The Business of AGI: $100 Billion Profits as Defined by Microsoft and OpenAI

Microsoft and OpenAI Define AGI in $100 Billion Profit Terms ...

OpenAI and Microsoft have collaborated to establish a unique internal definition of Artificial General Intelligence (AGI), centering around a financial benchmark. According to a report by TechCrunch, both companies have agreed to define AGI as a system capable of generating $100 billion in profits.

Defining AGI

Currently, OpenAI describes AGI as "systems that are generally smarter than humans" and as "a highly autonomous system that outperforms humans at most economically valuable work." This definition differs from traditional views of AGI in the field of artificial intelligence, which focus on cognitive abilities and adaptability.

OpenAI CEO Sam Altman has expressed optimism about achieving AGI sooner than expected, stating, "My guess is we will hit AGI sooner than most people in the world think and it will matter much less." However, the company is still projected to incur losses until 2029 before turning profitable.

Commercial Perspective

The agreement between OpenAI and Microsoft, signed in 2023, defines AGI based on financial outcomes rather than technical or philosophical benchmarks. This approach has raised debates within the AI community about the true nature of AGI and its implications.

Microsoft's involvement with OpenAI's technology is contingent on the achievement of AGI. The agreement ensures that Microsoft could continue accessing OpenAI's models for a decade or more post-AGI attainment.

Challenges and Considerations

Recent discussions have centered around OpenAI's o3 model and its potential as a step towards AGI.

While the o3 model shows promise in certain areas, its high computational costs pose challenges for both OpenAI and Microsoft in meeting the profitability benchmark set for AGI.

Ultimately, the financial definition of AGI as outlined by Microsoft and OpenAI represents a shift towards a more profit-driven perspective rather than a purely technical one, influencing the future trajectory of AI development.