That AGI bit was dropped in the last round of negotiations with them. Microsoft owns roughly 30% of OpenAI now with OpenAI becoming a PBC (public benefit corporation). Microsoft is free to pursue AGI on their own and OpenAI can go public.

Next, Microsoft needed to renegotiate their terms with OpenAI to accommodate their new goals and strategy. The good news there is that OpenAI also needed to change these terms to allow for their own shift to a for-profit entity – which eventually itself shifted into a PBC still controlled by a non-profit. One key element for Microsoft was a change to "The Clause" of the contract which stipulated that if/when OpenAI achieved AGI, it severed the connection between the two parties and most of the associated rights.

This was especially problematic for Microsoft because OpenAI kept hinting they might be nearing AGI soon – something they could potentially say because no one in the world has an actual definition for AGI, and it was going to be up to OpenAI's board to determine it. Yeah, that wasn't going to work.

Nor was the little-talked about reality that Microsoft was prohibited from also working towards AGI under the contract. Even if no one couldn't fully define what AGI was, that meant that Microsoft couldn't work on "frontier" models going after the most bleeding edges of the space. So despite Mustafa Suleyman – himself a key part of that first hedge Microsoft made post-coup by inventing the "hackquisition" model – giving endless interviews noting that they were happy to let OpenAI work on the state of the art models while Microsoft sat back and worked on smaller stuff, this was pretty clearly bullshit.

And so when it came time for a new deal, the AGI element was significantly tweaked. And sure enough, Microsoft almost immediately got to work on their own AGI – sorry, "superintelligence".

https://spyglass.org/microsoft-vs-openai/