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OpenAI and Microsoft have put a price tag on what it means to achieve AGI: report

Dec 27, 2024 - businessinsider.com
OpenAI and Microsoft have established an internal definition for artificial general intelligence (AGI) based on the financial potential of the technology, agreeing that AGI is a system capable of generating $100 billion in profits. This definition contrasts with OpenAI's public description of AGI as a highly autonomous system that outperforms humans in most economically valuable tasks. The agreement, signed in 2023, specifies that AGI systems are excluded from intellectual property licenses and other commercial terms with Microsoft, which apply only to pre-AGI technology. OpenAI's nonprofit board is responsible for determining when AGI has been achieved.

Despite this ambitious financial benchmark, OpenAI anticipates significant financial losses of around $44 billion from 2023 to 2028, with the potential to reach $100 billion in revenue by 2029. OpenAI CEO Sam Altman expressed optimism about achieving AGI sooner than expected, though he suggested its impact might be less significant than anticipated. Meanwhile, OpenAI is in preliminary discussions with California's attorney general's office about transitioning to a for-profit entity, having originally launched as a nonprofit in 2015. The company recently secured $6.6 billion in funding, bringing its valuation to $157 billion.

Key takeaways:

  • OpenAI and Microsoft have defined AGI as a system capable of generating $100 billion in profits, according to an agreement signed in 2023.
  • OpenAI publicly describes AGI as a highly autonomous system that outperforms humans in most economically valuable work.
  • OpenAI expects to incur losses of around $44 billion between 2023 and 2028, with a potential to reach $100 billion in revenue by 2029.
  • OpenAI is in preliminary discussions with California's attorney general's office about transitioning to a for-profit company, having started as a nonprofit in 2015.
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