Microsoft is officially building superintelligence, and it’s not waiting for anyone’s permission anymore.

The company made the announcement Thursday, saying it has formed a new group, the MAI Superintelligence Team under Mustafa Suleyman, who now leads Microsoft’s AI division.

The goal is not just to match human intelligence with machines, but to push way beyond it. According to Bloomberg, the company now wants to create AI systems that can outperform humans across every field, including health care, clean energy, and materials science.

Mustafa said in a blog post that AGI (artificial general intelligence) is when AI can do anything a human can. But he added that superintelligence goes “far beyond that performance.”

He said the new mission is to build what he calls Humanist Superintelligence, a system designed to serve people directly rather than chasing tech milestones. He named personal AI assistants, better medical outcomes, and sustainable energy solutions as real-world targets. The company previously wasn’t allowed to chase AGI, based on a restriction from its original deal with OpenAI, but that clause is now gone.

Microsoft forms new team after scrapping AI restriction

The updated contract between Microsoft and OpenAI removed the restriction that had kept Microsoft boxed into less powerful models. The new agreement also gives the tech company a 27% stake in OpenAI’s public-benefit company, letting it now work independently on AGI and more advanced tools. The changes come as the two firms shift from full collaboration to what looks more like strategic rivalry.

Mustafa, who’s 41 years old, joined Microsoft in 2024 after leaving Inflection AI, a startup he co-founded. Microsoft licensed Inflection’s intellectual property and brought him on board to help shape its future in AI.

Since then, Mustafa has reorganized internal teams, moved key Microsoft AI staff into the new group, and hired people from Google’s DeepMind, which he also helped start.

Mustafa told employees in September that Microsoft plans to spend big to build out its AI systems. So far, those models are still smaller than the biggest ones coming from OpenAI or Google, but the goal is to catch up fast. He said their timeline extends to 2032, the year when Microsoft’s rights to use OpenAI’s models expire.

Microsoft and OpenAI now compete on multiple fronts

While Microsoft still leans on OpenAI to power its Copilot chatbot, it’s also building its own voice, image, and text models. That means Microsoft is trying to reduce its dependence on OpenAI, even as the two remain deeply connected.

Still, some Microsoft employees allegedly told The Wall Street Journal that replacing OpenAI’s technology could take years. The consumer Copilot app, which runs on OpenAI’s models, still beats Microsoft’s version in downloads.

OpenAI, meanwhile, is working with Microsoft’s rivals, including Amazon and Oracle, and building out its own data centers.

The company’s enterprise product now makes up 40% of its revenue, up from 30% earlier this year, according to Sarah Friar, OpenAI’s Chief Financial Officer. That growing independence is turning the former allies into direct competitors in more ways than one.

Meta, OpenAI, and others have already formed superintelligence teams, but Mustafa says his group is staying away from certain areas. One example: he’s refusing to build AI that generates erotica, putting distance between his team and competitors.

Mustafa is framing Microsoft’s version of superintelligence as more people-centered, but the company isn’t hiding the fact that it wants to own the future of AI, on its own terms.

Microsoft’s 365 Copilot tools for business are still powered by OpenAI, but if Mustafa’s team delivers, those dependencies may disappear. Still, there’s no clear timeline. Microsoft’s push is just beginning, and even the company admits replacing what it gets from OpenAI won’t be fast.

Microsoft stock plunged by 1.4% on Thursday evening, trading at $500.01 in New York. But for now, the company is betting that chasing superintelligence is worth the risk.

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