In a surprising turn of events, Microsoft and OpenAI have established a financial benchmark for defining artificial general intelligence (AGI).
According to a recent report, the two tech giants have agreed that AGI will only be recognised when OpenAI develops AI systems capable of generating at least $100 billion in profits. This definition diverges significantly from traditional views of AGI, which focus on the ability of AI to perform any intellectual task that a human can.
Key Takeaways
Microsoft and OpenAI define AGI based on a profit threshold of $100 billion.
OpenAI is projected to incur significant losses, delaying profitability until at least 2029.
The agreement may extend Microsoft's access to OpenAI's technology for years to come.
The agreement highlights a strategic approach that prioritises financial outcomes over technical achievements. This has raised questions about the implications for the future of AI development and the competitive landscape between major players in the industry.
Financial Definition of AGI
The financial definition of AGI set by Microsoft and OpenAI is as follows:
Profit Threshold: AGI will be achieved when OpenAI's AI systems generate at least $100 billion in profits.
Current Status: OpenAI is currently facing substantial financial challenges, with projections indicating losses of up to $44 billion between 2023 and 2028.
Profitability Timeline: OpenAI has informed investors that it does not expect to turn a profit until 2029 or later.
This profit-centric definition contrasts sharply with the broader, more philosophical definitions of AGI that many experts advocate. Traditionally, AGI is viewed as a system that can perform any intellectual task that a human can, raising concerns about whether a purely financial metric can adequately capture the essence of such advanced technology.
Implications for Microsoft and OpenAI
The implications of this agreement are significant for both companies:
Access to Technology: Microsoft will lose access to OpenAI's technology once AGI is achieved, which incentivises the company to maintain a long-term partnership.
Market Positioning: By defining AGI in financial terms, both companies may be attempting to control the narrative around AI development and its implications for the market.
Investor Confidence: The financial definition may also serve to reassure investors about the viability of OpenAI's business model, despite the projected losses.
Industry Reactions
The announcement has sparked a mixed response within the tech community:
Scepticism: Some experts express scepticism about the viability of a profit-driven definition of AGI, arguing that it may hinder genuine advancements in AI technology.
Optimism: Others believe that this approach could lead to more sustainable business practices within the AI sector, aligning technological advancements with economic realities.
Conclusion
As Microsoft and OpenAI navigate the complex landscape of AI development, their financial definition of AGI raises important questions about the future of artificial intelligence. While the focus on profitability may provide a clear target, it remains to be seen whether this approach will foster genuine innovation or merely serve as a strategic business manoeuvre. The tech world will be watching closely as these two giants continue to shape the future of AI.
Sources
Microsoft and OpenAI have a financial definition of AGI: Report | TechCrunch, TechCrunch.
'$100B in profits': Microsoft, OpenAI's secret definition of AGI revealed, NewsBytes.
Microsoft and OpenAI have a financial definition of AGI: Report, Yahoo.
