Microsoft gains rights to OpenAI IP through 2032 in restructured AGI partnership

OpenAI has restructured its partnership with Microsoft, introducing an independent expert panel to verify when artificial general intelligence (AGI) is achieved and allowing Microsoft to independently pursue AGI development. The new agreement fundamentally changes the competitive dynamics of the AGI race, as Microsoft can now use OpenAI’s intellectual property to develop its own AGI solutions or partner with competitors like Anthropic.

What you should know: The restructuring was essential for OpenAI’s for-profit conversion, with up to $10 billion at stake if the deal hadn’t closed by New Year’s Eve.

• Microsoft’s IP rights now extend through 2032 and include access to post-AGI models, replacing the previous arrangement where Microsoft would lose all rights once AGI was declared.
• An independent expert panel will now verify AGI declarations rather than leaving the decision solely to OpenAI, though details about panel selection remain undisclosed.
• Microsoft retains full access to OpenAI’s research through 2030, including internal-use models and confidential development methods.

The competitive landscape: Microsoft can now directly compete with OpenAI in the AGI race while maintaining access to its partner’s technology.

• The tech giant has already begun diversifying its AI partnerships, recently purchasing AI services from Anthropic, OpenAI’s primary competitor.
• Microsoft faces some limitations if it uses OpenAI’s IP for AGI development, including compute restrictions until AGI is officially declared.
• OpenAI secured exclusive rights to consumer hardware IP, protecting its planned AI device collaboration with former Apple designer Jony Ive.

Why this matters: Industry leaders are increasingly narrowing their AGI timeline predictions, with some suggesting achievement as early as 2025-2026.

• Sam Altman, OpenAI’s CEO, wrote in January: “We are now confident we know how to build AGI as we have traditionally understood it.”
• Anthropic CEO Dario Amodei predicted “powerful AI” could arrive “as early as 2026, though there are also ways it could take much longer.”
• The financial markets and broader economy are increasingly dependent on AGI progress, making objective verification crucial.

What they’re saying: OpenAI executives acknowledge the complexity of defining and achieving AGI.

• “There are many parts of AI that I think are kind of bubble-y right now,” Altman said at the company’s recent DevDay event.
• Chief scientist Jakub Pachocki noted that while AI has “already surpassed [humans] on multiple axes,” this “doesn’t actually mean you’ve solved all the problems around it.”
• Altman emphasized a more practical approach: “I think it’s much more useful to say our intention, our goal, is by March of 2028, to have a true automated AI researcher and define what that means than it is to sort of try to satisfy everyone with a definition of AGI.”

The big picture: The AGI race has intensified significantly, with Microsoft now positioned as both OpenAI’s partner and potential competitor in achieving the industry’s most coveted milestone.