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New York Times sues OpenAI and Microsoft for training their AI using its articles and causing publishers billions of dollars in damages

Dec 27, 2023 - fortune.com
The New York Times has filed a lawsuit against Microsoft and OpenAI, accusing them of using its copyrighted content to develop artificial intelligence services, specifically training chatbots like ChatGPT. The media company alleges that this has caused billions of dollars in statutory and actual damages. This is the first lawsuit by a major media organization challenging OpenAI's practice of scraping text from the web for AI training, a practice that has previously drawn criticism.

OpenAI, currently in talks for new financing at a $100 billion valuation, has faced multiple lawsuits from content creators claiming improper use of their work for AI training. The New York Times lawsuit also alleges that Microsoft copied its articles for its Bing search engine and used OpenAI's technology to increase its value by a trillion dollars. The cases are still in their early stages and could take years to resolve.

Key takeaways:

  • The New York Times has filed a lawsuit against Microsoft and OpenAI, accusing them of using its copyrighted content to develop AI services, potentially causing billions in damages.
  • OpenAI has previously faced criticism and lawsuits for using web-scraped text to train its AI, including a chatbot, without proper licensing or permission.
  • Microsoft, a major backer of OpenAI, is accused of copying New York Times articles for its Bing search engine and using OpenAI's technology to increase its value.
  • OpenAI is currently seeking new financing at a $100 billion valuation, which would make it the second-most valuable US startup.
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