The New York Times has filed new legal documents alleging that OpenAI knowingly infringed on millions of copyrighted articles to develop its AI technology. The newspaper, along with other media outlets, is seeking billions of dollars in damages from OpenAI and Microsoft, claiming that the companies prioritized commercial gain over legal compliance.
Court filings reveal that OpenAI leadership was aware of the potential impact on publishers. A ChatGPT executive reportedly acknowledged that AI products pose an existential threat to news organizations, noting that these tools increasingly serve as substitutes for original content. Internal communications also suggest that OpenAI executives were aware of methods used to bypass paywalls.
Microsoft is also a defendant in the case. Internal documents cite Microsoft Applied Science Director Brent Hecht, who described the use of copyrighted material for training as a massive theft. Furthermore, Microsoft data indicated that users of its AI-powered search tools clicked on original content 83% to 93% less frequently than users of traditional search engines.
Microsoft CEO Satya Nadella testified that he would have exercised the company's rights to demand model retraining had he known about the scraping of paywalled content. Microsoft stated that Nadella's testimony addressed broad principles rather than specific legal conclusions regarding copyright. OpenAI maintains that its training process constitutes fair use.
