Global: The New York Times Initiates Lawsuit, Demands Compensation from OpenAI and Microsoft for Alleged Copyright Violation

The New York Times has filed a lawsuit against OpenAI and its collaborator and investor, Microsoft, claiming copyright infringement for training generative AI models on content owned by The Times. The lawsuit alleges that millions of Times’ articles were utilized to train AI models, including those powering OpenAI’s ChatGPT and Microsoft’s Copilot, without obtaining consent. The Times is urging OpenAI and Microsoft to eliminate models and training data containing the disputed material and be held accountable for potential “billions of dollars in statutory and actual damages.”

The complaint emphasizes the importance of protecting independent journalism and warns of the significant societal cost if news organizations cannot safeguard their content. The Times insists on the destruction of AI models created with its content and calls for compensation for the unlawful use of its valuable works.

In response, an OpenAI spokesperson expressed surprise and disappointment, highlighting ongoing constructive conversations with The New York Times. The spokesperson emphasized OpenAI’s commitment to respecting the rights of content creators and collaborating for mutual benefit.

Generative AI models learn from examples to generate content like essays, code, and articles. Vendors, including OpenAI, often scrape the web for examples to enhance their training sets. The legal dispute arises from the use of copyrighted material in these training sets, with copyright holders challenging the vendors’ fair use doctrine claims.

The conflict between vendors and copyright holders has resulted in various legal battles, with The Times’ lawsuit being the latest. Notably, this lawsuit underscores potential damage to the brand caused by generative AI models generating inaccurate information or “hallucinations.”

While other legal actions against generative AI vendors have been initiated, The Times’ lawsuit is notable for being the largest publisher involved in such a case. The complaint emphasizes the impact on The Times’ business, accusing OpenAI and Microsoft of effectively building news publisher competitors using The Times’ content.

The lawsuit brings attention to the broader issue of generative AI models regurgitating training data, reproducing content, and sometimes enabling users to bypass paywalls. The Times contends that OpenAI and Microsoft are using its content without payment to create products that substitute for The Times, negatively affecting its business.

The legal landscape around generative AI and copyright infringement is evolving, with publishers exploring licensing agreements with AI vendors. The outcome of lawsuits, like The Times’, will contribute to shaping the relationship between content creators and AI developers.