In a move that’s stirring debate across the tech world, Microsoft and OpenAI have unveiled a new way to define Artificial General Intelligence (AGI). Departing from traditional interpretations, their agreement marks AGI as “achieved” when OpenAI generates $100 billion in profits from its AI systems. This financial benchmark, while unconventional, reflects the growing influence of commercial objectives in AI development.

Profit vs. Capability: A Shift in Perspective

Historically, AGI has been associated with creating AI systems that can perform a broad range of tasks with human-like adaptability. This includes reasoning, learning, and generalizing knowledge across domains. While no universal definition of AGI exists, most interpretations focus on the system’s capabilities rather than its financial outcomes.

Microsoft and OpenAI’s profit-driven milestone challenges this narrative, emphasizing measurable outcomes over philosophical or technical ideals. This shift has sparked discussions about whether financial success can—or should—serve as a meaningful metric for AGI.

Strategic Motivations Behind the Redefinition

Why tie AGI to profits? According to TechCrunch, having a clear, quantifiable goal provides a way to track progress and manage expectations in the long term. For Microsoft, the stakes are particularly high. Their exclusive access to OpenAI’s models will end once this milestone is reached, making it crucial for the company to prepare its own AI systems for the competitive landscape.

In fact, Microsoft is already moving in that direction. Recent reports from Neowin reveal that the company is deploying in-house large language models (LLMs) for products like Microsoft 365 Copilot. By reducing its reliance on OpenAI, Microsoft is setting itself up for greater independence and resilience in the AI market.

Industry Reactions and Implications

The announcement has divided opinion. Critics argue that tying AGI to financial metrics dilutes the broader vision of creating general intelligence. Proponents, however, see value in setting measurable, business-oriented goals that align with the realities of today’s tech industry.

The debate around AGI itself remains lively. Some experts believe that existing AI models, such as OpenAI’s GPT, represent the early stages of AGI. Others think we’re still decades away from achieving the versatility and adaptability of human intelligence. By introducing a profit-based definition, Microsoft and OpenAI have added a new dimension to this ongoing discussion.

A Competitive AI Landscape

This redefinition of AGI isn’t just about semantics—it has practical implications for the industry. If OpenAI decides to go public, its financial performance will offer a transparent view of how close it is to hitting the $100 billion mark. Investors and stakeholders will gain a clearer understanding of progress through this lens.

Meanwhile, Microsoft’s strategy to develop its own AI models signals a future of intensified competition. The company’s efforts to reduce dependence on OpenAI could lead to a landscape where the two firms vie for dominance in AI innovation.

Rethinking Progress in AI

Whether you see it as pragmatic or problematic, this profit-driven approach to defining AGI reflects the evolving priorities of the tech industry. It underscores the growing influence of commercial objectives in shaping how we measure progress in AI.

While traditional definitions of AGI focus on technical milestones and human-like intelligence, Microsoft and OpenAI’s metric adds a financial layer to the narrative. This redefinition is unlikely to end the debate about what AGI truly is, but it provides a unique perspective on how the journey toward AGI might unfold.