Microsoft, OpenAI Near New Long-Term AI Deal

Microsoft and OpenAI are in advanced talks to revise their partnership, potentially allowing Microsoft continued access to OpenAI's technology even if OpenAI achieves artificial general intelligence (AGI), which would otherwise reduce Microsoft's rights under current agreements. Microsoft, having invested $13.75 billion, has integrated OpenAI models deeply into its Azure and Copilot offerings. The negotiations are pivotal as OpenAI seeks to transition to a for-profit structure, attract further investment, and secure greater corporate flexibility. Regulatory scrutiny and a lawsuit from Elon Musk, who alleges OpenAI has strayed from its original mission, remain possible obstacles to a deal. Key issues such as the definition of AGI and revenue-sharing terms are still unresolved. An agreement could finalize in weeks, further solidifying a partnership critical to both companies’ standing in cloud and AI markets.