I think AGI isn't the main thing. The agreement gives msft the right to develop their own foundation models, OpenAI to stop using Azure for running & training their foundation models. All this while msft still retains significant IP ownership.

In my opinion, whether AGI happens or not isn't the main point of this. It's the fact that OpenAI and MSFT can go their separate ways on infra & foundation models while still preserving MSFT's IP interests.