Microsoft and OpenAI Put a Price on Achieving AGI

Microsoft and OpenAI have reached a consensus on the monetary value of artificial general intelligence (AGI), with profitability at its core.

According to a 2023 agreement highlighted by The Information, AGI is characterized as a technology capable of generating $100 billion in profits.

Despite such a specific financial target, OpenAI traditionally describes AGI on its website as a system surpassing human ability in economically valuable tasks.

Notably, technologies falling short of AGI would still be governed by existing IP arrangements with Microsoft, emphasizing a clear delineation between current capabilities and the potential of AGI.

As it stands, OpenAI predicts a challenging road ahead, with anticipated losses totaling approximately $44 billion from 2023 through 2028, and revenues potentially reaching the $100 billion mark by 2029.

OpenAI’s CEO Sam Altman shared an optimistic yet tempered outlook at The New York Times DealBook Summit, hosted by Andrew Ross Sorkin on December 4.

“My guess is we will hit AGI sooner than most people think, and it will matter much less,” Altman remarked, suggesting a faster-than-anticipated arrival of AGI with perhaps less disruptive impact than speculated.

In another strategic development, Bloomberg in November reported that OpenAI is considering a transition from its nonprofit roots to a for-profit structure.

This dialogue is reportedly taking place with the attorney general’s office in California, marking a significant pivot for the company, which was founded in 2015 and achieved a staggering $157 billion valuation following a $6.6 billion funding round in October.

Both OpenAI and Microsoft have remained tight-lipped for now.

As these plans unfold, the tech and business communities will undoubtedly keep a keen eye on how these financial predictions and strategic shifts will guide the future of AGI.