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Microsoft and OpenAI have a financial definition of AGI: report

December 26, 2024 | by AI

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Understanding Microsoft’s and OpenAI’s Profit-Driven Approach to Artificial General Intelligence

Artificial General Intelligence (AGI) is a term that often sparks debate due to its complex and varying definitions. However, a recent report from The Information reveals that Microsoft and OpenAI have taken a unique approach by tying their definition of AGI to the startup’s profitability. According to this report, OpenAI and Microsoft agreed last year that AGI would be considered achieved when AI systems generate at least $100 billion in profits. This profit-centric view diverges from the more technical and philosophical interpretations of AGI.

  • OpenAI is expected to face significant financial losses this year.
  • The startup predicts it won’t turn a profit until 2029.
  • Microsoft retains access to OpenAI’s technology until AGI is achieved.

“AGI remains a term with varied meanings, but for Microsoft and OpenAI, it’s intrinsically linked to financial success.”

{The Information Report}

This agreement holds significant implications for both companies. If AGI is tied to such a high profitability marker, Microsoft could potentially have access to OpenAI’s cutting-edge technologies for many more years. Some speculate that OpenAI might declare AGI prematurely to influence this dynamic, but the agreement suggests otherwise.

The recent discussions around OpenAI’s o3 model also highlight the complexity of reaching AGI. While o3 demonstrates improved performance over its predecessors, the substantial computing costs associated with it challenge the profit-driven definition of AGI set by Microsoft and OpenAI.

In conclusion, this unique take on AGI highlights how financial metrics can reshape technological goals, sparking new debates about what truly defines artificial general intelligence.

Image Credit: fauxels on Pexels

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