What is AGI? Nobody agrees, and it’s tearing Microsoft and OpenAI apart.

When is an AI system intelligent enough to be called artificial general intelligence (AGI)? According to one definition reportedly agreed upon by Microsoft and OpenAI, the answer lies in economics: When AI generates $100 billion in profits. This arbitrary profit-based benchmark for AGI perfectly captures the definitional chaos plaguing the AI industry.

In fact, it may be impossible to create a universal definition of AGI, but few people with money on the line will admit it.

Over this past year, several high-profile people in the tech industry have been heralding the seemingly imminent arrival of "AGI" (i.e., within the next two years). But there's a huge problem: Few people agree on exactly what AGI means. As Google DeepMind wrote in a paper on the topic: If you ask 100 AI experts to define AGI, you'll get "100 related but different definitions."

This isn't just academic navel-gazing. The definition problem has real consequences for how we develop, regulate, and think about AI systems. When companies claim they're on the verge of AGI, what exactly are they claiming?

I tend to define AGI in a traditional way that hearkens back to the "general" part of its name: An AI model that can widely generalize—applying concepts to novel scenarios—and match the versatile human capability to perform unfamiliar tasks across many domains without needing to be specifically trained for them.

However, this definition immediately runs into thorny questions about what exactly constitutes "human-level" performance. Expert-level humans? Average humans? And across which tasks—should an AGI be able to perform surgery, write poetry, fix a car engine, and prove mathematical theorems, all at the level of human specialists? (Which human can do all that?) More fundamentally, the focus on human parity is itself an assumption; it's worth asking why mimicking human intelligence is the necessary yardstick at all.

The latest example of trouble resulting from this definitional confusion comes from the deteriorating relationship between Microsoft and OpenAI. According to The Wall Street Journal, the two companies are now locked in acrimonious negotiations partly because they can't agree on what AGI even means—despite having baked the term into a contract worth over $13 billion.