NYT alleges Microsoft, OpenAI knew using news content was theft

The New York Times has filed a lawsuit against OpenAI and Microsoft, alleging the companies engaged in a massive theft of copyrighted material to train their flagship AI model, ChatGPT. According to court documents unsealed on Thursday, OpenAI acquired millions of articles, with nearly a third originating from the New York Times alone.

Microsoft's director of applied science, Brent Hect, called the act "an astonishing theft of unprecedented proportions" and suggested it might be the "largest theft of labor in human history." Hect reportedly warned that OpenAI might have attempted to cover up the theft when identifying content from the New York Times in its systems.

The lawsuit was filed three years ago in New York federal court, with several other news publishers joining, including CNET owner Ziff Davis, Mother Jones, and The Intercept, alongside local newspapers from across the United States. They are seeking damages for each article allegedly stolen by OpenAI's models but are uncertain about the total penalties.

While OpenAI has since formed content licensing agreements with numerous news publishers worldwide since launching ChatGPT in late 2022, skepticism remains regarding the impact of generative AI software on internet news traffic. OpenAI engineers admitted that despite prominent citation practices, user engagement remains low, according to the court document.

Microsoft and OpenAI contend that their use of news content serves as a transformative use and falls under fair use laws. In September, the US Department of Justice filed a brief supporting OpenAI and Microsoft, emphasizing scientific progress, economic growth, and national security. The plaintiffs have requested a summary judgment in their favor, with a ruling expected in 2027.