Microsoft and OpenAI dueling over artificial general intelligence, The Information reports

Reuters
2025.06.25 22:53

Microsoft and OpenAI are in conflict over a contract clause regarding artificial general intelligence (AGI). Currently, if OpenAI achieves AGI, Microsoft would lose access to the technology. Microsoft is pushing for the removal of this clause, but OpenAI has refused. This disagreement is complicating OpenAI's transition to a public-benefit corporation, despite ongoing negotiations since their partnership began in 2019 with a $1 billion investment from Microsoft. Both companies have stated that discussions are ongoing and they remain hopeful for a long-term partnership.

June 25 (Reuters) - Microsoft (MSFT.O) and OpenAI are at odds over a contractual provision related to artificial general intelligence, The Information reported on Wednesday.

Under the current terms, when OpenAI achieves AGI, Microsoft’s access to such a technology would be void. Microsoft wants OpenAI to remove that clause but so far OpenAI has refused, the report said.

The report comes at a time when one of the most pivotal partnerships in the field of AI is under strain.

OpenAI needs Microsoft’s approval to complete its transition into a public-benefit corporation. But the two have not been able to agree on details even after months of negotiations, according to sources.

Microsoft partnered with OpenAI in 2019, investing $1 billion to support the startup’s development of AI technologies on its Azure cloud platform.

The companies did not immediately respond to Reuters requests for comment. In multiple statements addressing recent media speculation, both have said that discussions are ongoing and they remain optimistic about a long-term partnership.