New York Times Files Lawsuit Against OpenAI and Microsoft Over Copyright Infringement
The New York Times took legal action against OpenAI and Microsoft on Wednesday, accusing them of utilizing millions of the newspaper’s articles without permission to train chatbots for information delivery.
In a landmark move, the Times is the first major U.S. media organization to sue OpenAI, the creator of the popular ChatGPT AI platform, and Microsoft, a significant investor in OpenAI responsible for the Copilot AI platform. The lawsuit centers on copyright issues associated with the unauthorized use of Times’ content.
Various writers have previously filed suits against AI services for scraping their online content without compensation. The Times’ complaint, filed in Manhattan federal court, asserts that OpenAI and Microsoft attempted to leverage the newspaper’s extensive investment in journalism to create competing products.
The lawsuit challenges OpenAI and Microsoft’s claim of “fair use,” arguing that using copyrighted content for AI training lacks transformative value. The U.S. Copyright Office emphasizes that transformative uses should introduce something new with a distinct purpose or character.
While the Times is not specifying damages, it estimates them in the billions. The newspaper also demands the destruction of chatbot models and training sets that incorporate its material. Attempts to negotiate a resolution outside of court were unsuccessful.
Industry Impact: AI Companies and Investments
AI companies often scrape online information to train generative AI chatbots, attracting substantial investments. OpenAI has been valued at over $80 billion, with Microsoft holding a 49% stake through a $13 billion investment in its for-profit subsidiary.
Renowned novelists, including David Baldacci and John Grisham, have also sued OpenAI and Microsoft, claiming potential co-opting of their works. The Times’ lawsuit highlights instances where chatbots provided verbatim excerpts of its articles, posing a threat to high-quality journalism, reducing website traffic, and impacting advertising and subscription revenue.
The lawsuit contends that the chatbots make it challenging for readers to distinguish fact from fiction, citing instances of misinformation. The Times acknowledges the potential of generative AI for journalism but insists on obtaining permission and a fair agreement reflecting the value of its work for creating AI tools.
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