Microsoft and OpenAI unveiled a revised partnership that introduces an independent expert panel to verify when OpenAI achieves artificial general intelligence (AGI), replacing the previous arrangement where AGI timing was determined by OpenAI alone.
The deal values Microsoft’s stake in OpenAI at about $135 billion, extends the exclusive partnership through 2032, and preserves Microsoft’s exclusive rights to OpenAI’s IP and Azure API access up to the AGI milestone. The partnership began in 2019 with a $1 billion investment and has since relied on Microsoft’s cloud resources for OpenAI’s workloads and products like Copilot.
Details about the independent panel, including its composition and selection process, were not disclosed. In the past, the partners set a threshold of $100 billion in AI profits to guide AGI timing, but the new framework adds external oversight to a valuation that could run into billions.
Under the revised terms, once the panel confirms AGI, Microsoft’s rights to OpenAI’s research methods will expire and the revenue-sharing arrangement will end, though payments will continue over a longer period. Microsoft will maintain exclusive IP rights until AGI, effectively aligning the collaboration around the milestone.
Market observers note the partnership’s evolution mirrors the broader AI competition, with OpenAI’s valuation surging toward hundreds of billions. The arrangement leaves open questions about panel composition, criteria, and how AGI milestones will influence business models and governance going forward.
