Join the AI Unleashed event to listen to senior industry leaders on Nov 15. You can reserve your free pass now. OpenAI’s six-member nonprofit board of directors will determine whether the company has reached AGI – a highly autonomous system that outperforms humans at most economically valuable work. At that stage, Microsoft’s IP licenses and commercial terms will no longer apply to the new technology.

The for-profit arm is legally bound to follow the nonprofit’s mission. These details were revealed in a thread on X by OpenAI developer advocate Logan Kilpatrick, in response to a comment by Microsoft president Brad Smith.

After rejecting Microsoft’s capped equity offer, OpenAI has emphasized the importance of leaving AGI technologies and governance for humanity. OpenAI CEO Sam Altman has previously expressed his excitement to build AGI in partnership with Microsoft.

OpenAI’s nonprofit board of directors, however, is tied to the Effective Altruism movement. The board will play a crucial role in the determination of AGI, which has raised concerns and questions about the legitimacy of OpenAI’s claims. Experts have differing opinions about the implications of OpenAI’s AGI mission, and its impact on Microsoft, given the vague definition of AGI and the potential conflicts between profit interests and the nonprofit mission.

This news has certainly sparked debates among legal experts and industry observers. It remains to be seen how OpenAI and Microsoft will navigate the potential challenges ahead.