Perhaps more notably, the two companies killed the contract’s “AGI clause,” which set a variety of conditions if one of them achieved “artificial general intelligence.” (It’s a vaguely defined industry term that typically means AI systems that equal or surpass human intelligence on a wide range of tasks.)

The change impacts a revenue-sharing agreement, which was supposed to stay in place until AGI was declared. But now, the revenue-share payments coming from OpenAI to Microsoft will only continue through 2030 — and though they’ll continue “at the same percentage,” they’ll also be “subject to a total cap” instead of continuing in perpetuity. The payments will also continue and then end “independent of OpenAI’s technology progress,” which under any reasonable logic includes AGI. So RIP to that deal.

This is the second renegotiation of the clause. When OpenAI completed its controversial for-profit restructuring in October, it needed Microsoft’s blessing — and in the process of getting that blessing, the two companies struck a new deal. Before the October contract changes, Microsoft would’ve lost its rights to OpenAI’s technology once the latter had reached AGI. But Microsoft’s IP rights for OpenAI’s models and products were extended through 2032 — and Microsoft’s rights included models even after an independent panel theoretically declares AGI had been reached.

Now, there’s no independent panel, there’s no if-this-then-that language for if or when AGI is declared, and OpenAI may never have to actually announce if it reaches that milestone. Microsoft’s license to OpenAI’s models and products that it holds through 2032 is now non-exclusive. Any other competitor can now join in.