Microsoft-OpenAI AGI Clause Officially Terminated
The controversial AGI clause in the Microsoft-OpenAI partnership, which would have nullified Microsoft's commercial IP rights upon achievement of artificial general intelligence, has been effectively terminated. Originally included in their 2019 agreement, the clause defined AGI as "highly autonomous systems that outperform humans at most economically valuable work." Over time, the definition shifted: by December 2024, AGI was tied to generating $100 billion in profit for early investors. In October 2025, an independent expert panel was introduced to verify AGI declarations. However, on April 27, 2026, OpenAI and Microsoft issued a joint statement declaring the AGI definition and processes unchanged, yet a subsequent update indicated the clause is now "independent of OpenAI's technology progress," effectively rendering it dead. The Verge confirmed the clause's demise. Simon Willison tracked this evolution on his blog, noting the irony that AGI was once seen as a safeguard for humanity against commercial exploitation.
Key facts
- AGI clause nullified Microsoft's IP rights if AGI achieved.
- Clause first appeared in 2019 Microsoft-OpenAI partnership.
- AGI defined in 2018 OpenAI Charter as systems outperforming humans at economically valuable work.
- By December 2024, AGI tied to generating $100 billion profit for investors.
- October 2025 introduced independent expert panel to verify AGI.
- April 27, 2026 joint statement claimed AGI definition unchanged.
- Subsequent update made AGI clause independent of technology progress.
- The Verge confirmed the clause is dead.
Entities
Institutions
- OpenAI
- Microsoft
- The Verge
- TechCrunch
- The Information