Overview

• The contested clause, agreed in 2019, would allow OpenAI’s board to cut off Microsoft’s access to its AI models once it declares achievement of AGI.
• Microsoft, which has invested more than $10 billion in OpenAI, is pushing to remove the clause to secure long-term access for its Azure and flagship software offerings.
• OpenAI has refused to eliminate the provision as it pursues greater autonomy while transitioning to a for-profit model.
• Microsoft has indicated it could take up to a 35 percent equity stake in OpenAI’s reorganized entity but insists on broader intellectual property rights beyond any AGI milestone.
• Both companies issued a joint statement expressing optimism that ongoing negotiations will preserve their long-term AI collaboration.