Microsoft in advanced talks for continued access to OpenAI tech, Bloomberg reports

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(Reuters) -Microsoft is in advanced talks for a deal that would give the Windows maker continued access to critical OpenAI technology in the future, Bloomberg News reported on Tuesday, citing two people familiar with the negotiations.

The companies have discussed new terms that would allow Microsoft to use OpenAI’s latest models and technology even if the ChatGPT maker declares it has achieved artificial general intelligence (AGI), or AI that surpasses human intelligence, the report said.

A clause in OpenAI’s current contract with Microsoft will shut the software giant out of some rights to the startup’s advanced technology when it achieves AGI.

Negotiators have been meeting regularly, and an agreement could come together in a matter of weeks, Bloomberg News reported.

OpenAI did not immediately respond to a Reuters request for comment, while Microsoft declined to comment.

OpenAI needs Microsoft’s approval to complete its transition into a public-benefit corporation. The two have been in negotiations for months to revise the terms of their investment, including the future equity stake Microsoft will hold in OpenAI.

Last month, the Information reported that Microsoft and OpenAI were at odds over the AGI clause.

OpenAI is also facing a lawsuit from Elon Musk, who co-founded the company with Sam Altman in 2015 but left before it surged in popularity, accusing OpenAI of straying from its founding mission — to develop AI for the good of humanity, not corporate profit.

Microsoft is set to report June-quarter earnings on Wednesday, with its relationship with OpenAI in the spotlight, as the startup turns to rivals Google, Oracle and CoreWeave for cloud capacity.

(Reporting by Deborah Sophia in Bengaluru; Editing by Sahal Muhammed and Maju Samuel)