Microsoft and OpenAI add expert panel to verify AGI claims in new partnership

Microsoft and OpenAI have restructured their partnership with a new contractual requirement that any declaration of artificial general intelligence (AGI) must be verified by an independent expert panel before becoming official. The change eliminates OpenAI’s previous unilateral authority to declare AGI achievement, addressing Microsoft’s concerns about potentially losing access to future AI developments based solely on OpenAI’s internal assessment.

What you should know: The updated agreement fundamentally alters how the tech industry’s most significant AI milestone will be validated and recognized.

• Previously, OpenAI could independently trigger an “AGI clause” that would potentially limit Microsoft’s access to future models and intellectual property rights.
• Under the new terms, while OpenAI retains the right to make initial AGI claims, independent experts must verify these declarations before they become contractually binding.
• Microsoft’s intellectual property rights for both models and products now extend through 2032, including post-AGI models, with some limitations and exceptions.

Why this matters: The restructuring introduces external oversight to what could be the most consequential moment in artificial intelligence development while protecting both companies’ strategic interests.

• The change transforms AGI from a vague buzzword into a formal, technical milestone that must demonstrate cross-domain thinking, independent learning, and human-level reasoning capabilities.
• For consumers, the arrangement suggests at least some outside checks on AI capabilities, potentially providing fewer surprises, more transparency, and hopefully less confusion about whether you’re using a superintelligence or just a very helpful autocomplete engine with good manners.
• The deal allows Microsoft contractual rights to pursue AGI independently or with other partners while enabling OpenAI to explore open-weight models and third-party collaborations.

The big picture: This contractual change reflects growing skepticism about AI capability claims and establishes a precedent for external validation in the AGI race.

• The agreement coincides with OpenAI’s corporate restructuring as a for-profit company, marking what Eric Hal Schwartz of TechRadar calls “the end of an era of AI development.”
• Multiple players are entering the AGI competition, making clear delineation of rights and capabilities increasingly essential.
• The verification process introduces a layer of accountability that, while not quite real accountability, may provide sufficient oversight to matter in practice.

Key questions remain: Critical details about the verification process are still undefined, including panel composition, selection criteria, and decision-making procedures.