Microsoft and OpenAI are facing a conflict regarding a specific clause in their agreement concerning artificial general intelligence (AGI), according to a report by The Information released on Wednesday.
The current contract stipulates that once OpenAI achieves AGI, Microsoft’s access to this technology will be nullified. Microsoft is seeking the removal of this clause, however, OpenAI has yet to agree to these changes, the report stated.
In a joint statement sent to Reuters, the two companies expressed their commitment to their partnership, stating, “We have a long-term, productive partnership that has delivered amazing AI tools for everyone. Talks are ongoing, and we are optimistic we will continue to build together for years to come.”
This development occurs during a critical period for one of the most significant collaborations in the AI sector, as the partnership is reportedly under pressure.
OpenAI requires Microsoft’s consent to finalize its transformation into a public-benefit corporation. However, despite months of discussions, the two parties have struggled to reach an agreement on the particulars, according to insider sources.
Microsoft first aligned with OpenAI in 2019, investing $1 billion (approximately Rs. 8,581 crore) to facilitate the startup’s AI technology development on Microsoft’s Azure cloud platform.
© Thomson Reuters 2025
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