Microsoft and OpenAI Redefine AGI for Economics | Chat AI | OpenAI Playground | Chat OpenAI | Turtles AI

 Microsoft and OpenAI have defined a financial version of AGI based on billion-dollar profits, indicating that the startup is still far from its goal. The focus remains on the technology deal and future implications.

Key points:

• Definition of AGI based on financial profits.
• OpenAI expects not to break even before 2029.
• Microsoft maintains access to OpenAI’s technology until AGI is achieved.
• Advanced models such as o3 face problems of economic sustainability.

Microsoft and OpenAI have decided to reinterpret the concept of General AI (AGI) by adopting a financial perspective that measures achievement in terms of profits generated. As reported by The Information, the two companies have agreed that OpenAI will reach AGI only when its AI systems are able to produce at least $100 billion in profits. This is a far cry from the traditional technical and philosophical parameters used to define AGI, which tends to focus on human-level or higher cognitive capabilities.

Currently, the financial data do not play in the startup’s favor: OpenAI expects to accumulate significant losses in the coming years, with a projection of not generating profits until 2029. This scenario reinforces the idea that AGI, in their revenue-based view, remains a distant target. Moreover, the agreement between the two companies introduces an important clause: Microsoft loses access to OpenAI’s advanced technologies once AGI is reached. This detail fuels debate about the risk that OpenAI may declare early that it has reached AGI to end its technology partnership with Microsoft, a possibility that nevertheless seems unlikely when considered in the light of the financial definition adopted.

OpenAI’s most recent model, known as o3, has been the focus of discussions as a possible step toward AGI. Although it represents an advance over its predecessors, the high computational costs required to operate it raise questions about the economic viability of the project. This aspect further reinforces the distance between OpenAI’s current goals and the goal of AGI as defined in the agreement with Microsoft. In any case, the collaboration between the two companies could continue for a long time, solidifying an alliance that seems destined to shape the future of research in AI.

 The economic definition of AGI introduces an interesting perspective on the links between technological innovation and financial sustainability, influencing strategies and collaborations in the AI landscape.