OpenAI may have just handed Microsoft the keys to the AI kingdom — CEO Mustafa Suleyman wants to “be self-sufficient”

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Microsoft has invested around $13 billion in OpenAI, making it the company’s biggest investor. However, some investors are worried about the partnership, questioning whether it will be profitable, especially with concerns growing about an ‘AI bubble’ that could soon collapse.

For the past two months, Microsoft and OpenAI have been experiencing significant tension. This stemmed from OpenAI’s desire to become a for-profit company, a move intended to prevent unwanted acquisitions or outside control. Several sources indicated that Microsoft was delaying these plans, seemingly to safeguard its own position.

Recently, the companies reaffirmed their commitment by signing a revised agreement with some changes and additions. For example, OpenAI is now prohibited from claiming to have achieved Artificial General Intelligence (AGI) without first having its claim verified by an independent group of experts.

Even if OpenAI develops artificial general intelligence (AGI) before 2030, Microsoft will retain the rights to OpenAI’s models and products, including any future AGI creations, until 2032. More notably, Microsoft is now free to develop its own AGI technology, either on its own or with other companies, which could pose a challenge to OpenAI’s dominance.

As an analyst, I’ve been closely following Microsoft’s moves since their deepened partnership with OpenAI. It’s clear they’re going all-in on generative AI. Recently, their AI CEO, Mustafa Suleyman, shared that Microsoft isn’t just aiming for advanced AI – they’re actively working towards superintelligence. However, a key aspect of their approach is ensuring this technology is fundamentally designed to benefit and serve humanity.

Microsoft must develop its own independent AI capabilities. This means building and training advanced AI models, of various sizes, using our own data and the latest computing technology.

Microsoft AI CEO, Mustafa Suleyman

The company also unveiled its new MAI Superintelligence team, which will work to achieve leading-edge performance. In an interview with Business Insider, Mustafa Suleyman explained that the team’s goal is to build a top-tier research department within the company.

This is an unexpected shift in direction, particularly considering the executive’s earlier statements. Suleyman explained that Microsoft is building its own AI models, designed to be about 3 to 6 months behind OpenAI’s. He stated, “We’re aiming to be a very close second.”

Sources familiar with the previous agreement between Microsoft and OpenAI say Microsoft was likely prohibited from independently developing its own advanced artificial general intelligence (AGI) until 2030. This arrangement would have given OpenAI a significant advantage in the AI field, while allowing it to utilize Microsoft’s powerful cloud computing infrastructure.

As a big fan of both Microsoft and OpenAI, I was surprised to hear that OpenAI is planning this massive $500 billion project, called Stargate! It seems like they’re building their own data centers all over the US, which means Microsoft isn’t the only cloud provider they’re relying on anymore. It’s a big shift, and honestly, pretty exciting to see what OpenAI is capable of.

With the finalized agreement now in place, Microsoft is poised to compete more strongly in the development of artificial intelligence. The company’s new superintelligence team aims to dramatically improve healthcare, energy, and transportation. According to Microsoft’s AI leader, their ultimate goal is to lower the cost of living for people around the world over the next decade.

Microsoft is taking this step because developing Artificial General Intelligence (AGI) is proving more challenging than expected. Recent reports indicate progress has stalled, largely because there isn’t enough good data available to train these advanced AI models.

Microsoft appears ready to meet the challenge, as Suleyman has stated the company will significantly invest in computing power by collaborating with NVIDIA. They also intend to expand their development of custom chips and strengthen their cloud infrastructure specifically for training AI models.

Microsoft is committed to developing powerful AI, potentially even reaching the level of artificial general intelligence (AGI) or superintelligence, but always with the goal of keeping it beneficial and controlled by people. As Mustafa Suleyman explains:

We often assume it’s obvious, but it’s crucial to say it clearly and often: making sure humanity’s values are central to everything we do. As artificial intelligence becomes more powerful, there’s a real danger it could surpass us. We need to build these systems carefully, with a focus on human well-being, to ensure people remain in control.

However, the company isn’t limiting itself to specific AI models. They’re open to using various options, including open-source models from companies like Anthropic or even OpenAI. As Suleyman explained, “We don’t want to be inflexible about this – our main priority is getting our products to work effectively.”

FAQ

Can Microsoft pursue AGI despite its partnership with OpenAI?

For a long time, it felt like achieving Artificial General Intelligence was out of reach. However, a recent agreement now gives Microsoft the go-ahead to develop AGI on its own, or to partner with other organizations to make it happen. As a researcher in this field, this is a significant development.

Where does Microsoft’s partnership with OpenAI stand after the recent recapitalization?

Microsoft has made an investment in Public Bunsiess Corporation (PBC), now worth $135 billion. This gives Microsoft approximately 27% ownership of the company.

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2025-11-11 15:42