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Title: The Controversial Clause in OpenAI's Contract with Microsoft: A Deep Dive into the Unreleased AGI Paper and its Impact on the Tech Giant Partnership

In a surprising turn of events, a seemingly insignificant clause within the contract between OpenAI and Microsoft has become the center of attention in one of the largest tech partnerships. This clause, which was once considered a distant hypothetical, is now causing tension and potential complications for both parties. The clause stipulates that if OpenAI's board declares that it has developed Artificial General Intelligence (AGI), Microsoft's contracted access to the startup's future technologies would be limited. Microsoft, which has invested over $13 billion in OpenAI, is reportedly pushing for the removal of this clause and is considering terminating the partnership entirely, according to the Financial Times.

The tensions surrounding AGI's sudden importance in the Microsoft deal spilled into a debate within OpenAI regarding an internal research paper last year. Known as "Five Ranges of Common AI Capabilities," this paper outlines a framework for classifying different levels of artificial intelligence technology. By making specific assertions about future AI capabilities, sources claim, the paper could potentially hinder OpenAI's ability to declare that it had achieved AGI, which might provide leverage in negotiations.

"We are focused on creating empirical strategies to measure and evaluate AGI progress—work that is reproducible, measurable, and useful to the broader community," OpenAI spokesperson Lindsay McCallum stated in a written remark to WIRED. "The 'Five Levels' was an early attempt at classifying levels and terminology to describe common AI capabilities. This was not a scientific research paper." Microsoft declined to comment.

In a blog post describing its corporate structure, OpenAI notes that AGI is "excluded from IP licenses and other business terms with Microsoft." OpenAI defines AGI as "a highly autonomous system that outperforms humans at most economically valuable work." The two companies have been renegotiating their agreement as OpenAI prepares a corporate restructuring. While Microsoft wants continued access to OpenAI's models even if the startup declares AGI before the partnership ends in 2030, one individual familiar with the partnership discussions tells WIRED that Microsoft does not believe OpenAI will achieve AGI by that deadline. However, another source close to the matter describes the clause as OpenAI's final leverage. Both sources were granted anonymity to speak freely about private discussions.

According to the Wall Street Journal, OpenAI has even considered invoking the clause based on an AI coding agent. The talks have become so contentious that OpenAI is reportedly discussing whether it should publicly accuse Microsoft of anticompetitive conduct, according to the Journal.

A source familiar with the discussions, granted anonymity to speak freely about the negotiations, says OpenAI is nearly at achieving AGI; Altman has said he expects to see it during Donald Trump's current term. This same source suggests that there are two related definitions: First, OpenAI's board can unilaterally determine that the company has reached AGI as defined in its charter, which would immediately cut off Microsoft's access to the technology or income derived from AGI; Microsoft would still have rights to everything before that milestone. Second, the contract includes a concept of sufficient AGI, added in 2023, which defines AGI as a system capable of producing a certain level of profit. If OpenAI asserts it has reached that benchmark, Microsoft must approve the determination. The contract also bars Microsoft from pursuing AGI on its own or through third parties using OpenAI's IP.

The potential impact of this clause is significant for both companies. For Microsoft, losing access to OpenAI's future technologies could mean missing out on advancements in AI that could give it a competitive edge. For OpenAI, invoking the clause could lead to a public accusation of anticompetitive conduct and potentially damage its relationship with Microsoft.

The debate over AGI is not only important for these two companies but also for the broader AI community. AGI is considered the next step in artificial intelligence development, where machines can understand, learn, and apply knowledge across a wide range of tasks at a level equal to or surpassing human abilities. Achieving AGI could revolutionize various industries, from healthcare to finance, and have profound implications for society as a whole.

OpenAI's "Five Ranges" paper provides a framework for understanding the different levels of AI technology currently available and the steps necessary to reach AGI. The paper outlines five stages: Narrow AI, Supervised Learning, Reinforcement Learning, Unsupervised Learning, and AGI. Each stage represents an increase in the complexity and autonomy of AI systems, with AGI being the ultimate goal.

OpenAI's focus on developing empirical strategies to evaluate AGI progress is critical for ensuring that advancements are reproducible, measurable, and useful to the broader community. By creating a framework for classifying AI technology, OpenAI hopes to provide researchers and developers with a clear roadmap for achieving AGI and understanding its potential impact on society.

The debate over the clause in OpenAI's contract with Microsoft highlights the challenges and opportunities that come with developing AGI. As the race to achieve AGI heats up, it is essential that companies and researchers work together to ensure that AI technologies are developed responsibly and ethically. The potential benefits of AGI are immense, but so are the risks if it is not properly managed.

In conclusion, the clause in OpenAI's contract with Microsoft has become a flashpoint in one of the largest partnerships in tech. By understanding the context behind this clause and the importance of AGI to both companies and the broader AI community, we can appreciate the complexities involved in developing AGI and the challenges that come with managing these advancements. As the debate over this clause continues, it is essential to prioritize responsible development, collaboration, and ethical considerations to ensure that AGI benefits humanity as a whole.