OpenAI-Microsoft AGI Clause Ends

For a long time, a clause existed between Microsoft and OpenAI stating that Microsoft's commercial IP rights would become void once AGI is reached. The new partnership announcement on April 27, 2026 is being read as a signal that this clause has effectively ended.

In the 2019 announcement of its collaboration with Microsoft, OpenAI stated it would license some pre-AGI technologies, and the OpenAI Charter has defined AGI as "highly autonomous systems that outperform humans at most economically valuable work." However, this definition alone was too vague to serve as a contractual standard.

Since then, the criteria became increasingly specific.

• According to a December 2024 report by The Information, AGI was interpreted as the point at which it could generate the maximum total profit to be returned to early investors, approximately $100 billion.
• In October 2025, OpenAI explained that an AGI declaration would be verified by an independent panel of experts, and that Microsoft's research IP rights would remain in effect until the panel confirms AGI or until 2030.
• A joint statement on February 27, 2026 stated that the definition and procedure for AGI had not changed.

However, the "next phase" contract disclosed on April 27, 2026 stated that Microsoft's license to OpenAI's IP would continue until 2032 but become non-exclusive, that Microsoft would no longer pay OpenAI a revenue share, and that the revenue share OpenAI pays to Microsoft would continue until 2030 regardless of technological progress. The author interpreted this wording as meaning the end of the AGI clause, and The Verge reached the same conclusion.