Microsoft and OpenAI are in advanced talks that could give Microsoft continued access to OpenAI’s technology even after the start-up decides it has reached the landmark of “artificial general intelligence”, or AGI, Bloomberg reported.
Negotiators have been meeting regularly and an agreement could arrive in a matter of weeks, the report said, citing three unnamed people with knowledge of the matter.
Satya Nadella, chief executive of Microsoft, discussed the matter with OpenAI chief Sam Altman at the Allen & Co conference in Sun Valley, Idaho, earlier in July, the report said.
‘Positive’ talks
Talks have been positive in tone, but no final agreement has reportedly been reached.
Microsoft is seeking to avoid suddenly losing access to new OpenAI technology before its current agreement with the company expires in 2030.
OpenAI’s board has the right to determine whether the company’s technology has reached the AGI milestone, indicating a form of AI that equals or surpasses human intelligence in most ways.
Under their current agreement, Microsoft would lose some rights to OpenAI’s technology after the landmark is reached.
OpenAI is seeking a larger slice of the revenue it currently shares with Microsoft under their deal, The Information reported in May, while other reports have said it has sought adjustments to Microsoft’s access to its intellectual property.
The Financial Times reported in May that Microsoft is looking for continued access to OpenAI’s technology after 2030, in exchange for which it would be willing to give up a portion of the equity stake it would hold in OpenAI after its planned restructure as a for-profit company.
OpenAI is trying to restructure as a for-profit, public-benefit corporation away from its current non-profit status, and needs Microsoft’s approval to do so.
IPO plans
A deal between the two would remove a major obstacle to the restructure, which OpenAI needs to complete by the end of this year to satisfy major investors such as SoftBank.
An agreement would also allow OpenAI to move toward an initial public offering, the FT reported.
An OpenAI deal to acquire start-up Windsurf fell apart earlier in July after OpenAI failed to get Microsoft to agree to limits on its access to Windsurf’s technology, the Wall Street Journal reported.
Windsurf, which makes coding tools that compete with those of Microsoft, instead agreed to be acquired by Google.
