OpenAI, Microsoft Rift Hinges on How Smart AI Can Get

The future of the OpenAI-Microsoft partnership—one of the most storied in tech history—hinges in part on the meaning of an amorphous AI buzzword that divides many in the industry.

- Berber Jin

The contract between the tech partners, who have been locked in acrimonious negotiations, stipulates that when OpenAI's systems reach "artificial general intelligence," or AGI, the startup will be able to limit Microsoft's access to its future technology.

Microsoft is fighting hard to prevent that.

Many AI experts see AGI as the point at which generative AI systems achieve humanlike intelligence, but OpenAI and Microsoft are at odds over the issue.

OpenAI executives, including Sam Altman, believe they are close to being able to declare that their AI tools have achieved the AGI level of proficiency, according to people familiar with the matter.

Microsoft Chief Executive Satya Nadella has expressed skepticism that reaching such a benchmark is possible.

Their disagreement mirrors a debate among Silicon Valley's elite about just how sophisticated cutting-edge tools can become.

"We have a long-term, productive partnership that has delivered amazing AI tools for everyone. Talks are ongoing, and we are optimistic we will continue to build together for years to come," representatives for both companies said in a statement.