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Investing.com-- Microsoft (NASDAQ:MSFT) and OpenAI are facing growing tensions over a clause in their $10 billion partnership agreement that allows OpenAI to cut off Microsoft’s access to its AI models if it declares the achievement of artificial general intelligence (AGI), The Information reported on Wednesday.
Initially viewed as a remote possibility when the deal was struck in 2019, AGI now appears more attainable, with OpenAI CEO Sam Altman suggesting the company is nearing that milestone, the report said.
Microsoft disagrees and is pressing OpenAI to remove the AGI clause, which could affect its exclusive rights to the AI technology through 2030, The Information reported, citing sources.
The dispute has stalled OpenAI’s restructuring efforts aimed at taking its for-profit arm public, with Microsoft — its biggest outside investor — withholding approval. Both sides have threatened drastic action, while continuing daily talks to resolve the impasse, the report said.
OpenAI’s board still controls key decisions under its nonprofit charter. Microsoft, meanwhile, is pushing for greater transparency and longer-term access to OpenAI’s models, as the partnership faces growing competition and strategic divergence, the report added.