'$100B in profits': Microsoft, OpenAI's secret definition of AGI revealed
What's the story
According to documents obtained by The Information, OpenAI and Microsoft jointly defined artificial general intelligence (AGI) as a system that can generate $100 billion in profits. The definition was part of a 2023 agreement between the two tech giants. However, OpenAI's public definition of AGI on its website is slightly different, describing it as "a highly autonomous system that outperforms humans at most economically valuable work."
Decision-making authority
OpenAI's board to determine AGI achievement
Whether AGI has been achieved will be decided by OpenAI's non-profit board. The company explained on its website that "such a system is excluded from IP licenses and other commercial terms with Microsoft, which only apply to pre-AGI technology." This makes it clear that pre-AGI and AGI technologies are clearly separated in their commercial deals with Microsoft.
Revenue expectations
OpenAI's financial projections and AGI timeline
Despite the ambitious definition of AGI, OpenAI expects to incur major losses in the coming years. The company expects to be in the red by some $44 billion between 2023 and 2028, with the possibility of hitting $100 billion in revenue by 2029. The projections were reported by The Information in October, citing financial documents it had accessed.
Future perspective
OpenAI CEO's optimistic outlook on AGI development
OpenAI CEO Sam Altman had an optimistic take on AGI development during an interview at The New York Times DealBook Summit on December 4. "My guess is we will hit AGI sooner than most people in the world think and it will matter much less," he said. The statement hints at a quicker timeline for achieving AGI than what most people expect.
Organizational shift
OpenAI's transition from nonprofit to for-profit status
In November, Bloomberg reported that OpenAI was in early talks with California's attorney general's office to transition into a for-profit company. If it goes through, this would be a major shift for the organization, which was launched as a nonprofit research entity in 2015. Despite the changes and projected losses, OpenAI is still financially strong after closing a $6.6 billion funding round in October, valuing it at $157 billion.