Microsoft and OpenAI’s famed AGI agreement is dead

Microsoft and OpenAI have officially dissolved their famed 'AGI clause,' a key provision that governed their partnership around the achievement of artificial general intelligence. The clause, which previously dictated revenue-sharing and IP rights if AGI was reached, has been dropped entirely. Under the new terms, OpenAI can now serve its products across any cloud provider, including rivals like Amazon and Google, though Microsoft remains the primary cloud partner and will get first access to OpenAI products unless it cannot support the necessary capabilities. Microsoft still receives a revenue cut from these external agreements.

Revenue-sharing payments from OpenAI to Microsoft will now only continue through 2030, with a total cap, instead of continuing indefinitely until AGI. Microsoft's IP license for OpenAI's models and products is now non-exclusive through 2032. The changes come as OpenAI prepares for a public offering and pivots to enterprise and coding revenue, cutting 'side quests' like Sora. Microsoft retains its major shareholder status but no longer has a specified ownership stake. The move signals a less exclusive, more market-driven relationship between the two AI giants.