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Elon Musk vs Microsoft: Legal Battle Over OpenAI's Future and AGI

Musk's lawsuit challenges OpenAI's shift to for-profit. Microsoft wants a stake to secure long-term access to AGI technology.

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Tech giants Elon Musk and Microsoft are locked in a legal and strategic battle over the future of OpenAI, the AI research company co-founded by Musk. Musk has filed a lawsuit to block OpenAI's conversion into a for-profit entity, while Microsoft seeks to renegotiate its deal to secure ongoing access to OpenAI's technology, even after the potential achievement of Artificial General Intelligence (AGI).

AGI, an AI system that can perform any intellectual task a human can, is the holy grail of AI research. However, there's no consensus on what it looks like or how to measure it. OpenAI, focused on safety and responsible AI development, wants to ensure Microsoft will use its technology responsibly, especially as it grows more powerful.

Microsoft, which has invested $13.75 billion into OpenAI and integrated its tools like Copilot into products such as Windows, Office, and GitHub, is pushing for a formal equity stake in the restructured OpenAI. It wants a low- to mid-30% ownership, aiming to secure its long-term involvement with OpenAI. The current agreement ends in 2030 or earlier if OpenAI declares it has reached AGI, creating uncertainty for Microsoft. Microsoft wants language in the agreement that protects its use of OpenAI's tools even if OpenAI says it has achieved AGI.

OpenAI, on the other hand, wants to remove the limits on its profits and become a fully for-profit company. It aims to raise more money and reward its backers more substantially. Musk, a co-founder of OpenAI, has filed a lawsuit to prevent this conversion, potentially slowing negotiations.

The future of OpenAI and its relationship with Microsoft hangs in the balance. Musk's lawsuit and Microsoft's renegotiation efforts highlight the strategic importance of OpenAI's technology and the potential implications of AGI. As the legal and strategic battle unfolds, both companies are keen to ensure they have a say in shaping the future of AI.

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