AGI linked to profits in Microsoft and OpenAI agreement

OpenAI and Microsoft have reportedly agreed on a financial benchmark to define AGI. According to ‘The Information’, AGI will be achieved only when OpenAI’s AI systems generate profits exceeding $100 billion. This definition departs from traditional technical interpretations of AGI and suggests the milestone is many years away.

Despite growing speculation about the progress of models like OpenAI’s o3, the company is currently unprofitable. It expects significant losses this year and predicts profitability only by 2029. The high computational costs associated with advanced AI models pose additional challenges to meeting the ambitious profit target.

Microsoft’s access to OpenAI’s technology hinges on this definition. Under their agreement, Microsoft retains access to OpenAI’s models until AGI is achieved. This provision has sparked discussions, as some believe OpenAI could prematurely declare AGI to gain strategic advantage, though the profit-centric definition may delay such claims.

Experts remain divided on whether the o3 model represents meaningful progress toward AGI. Its performance gains are tempered by substantial expenses, underscoring the tension between innovation and commercial viability in AI development.