New York Times Files Lawsuit Against OpenAI and Microsoft Over Copyright Infringement

The New York Times is suing OpenAI and Microsoft for allegedly using its published news articles to train AI chatbots without appropriate compensation for intellectual property. Filed in a Federal District Court in Manhattan, this lawsuit represents a significant legal challenge, marking the first time a major news organization has targeted the ChatGPT developers for copyright infringement.

While the NYT did not disclose the exact amount sought, it aims to hold the companies accountable for “billions of dollars in statutory and actual damages.” The lawsuit asserts that OpenAI and Microsoft are attempting to "free-ride on The Times’s massive investment in its journalism" without any licensing agreements. The NYT's complaint points out that its domain, www.nytimes.com, was the primary source of data used to train GPT-3. It claims that over 66 million records, including news articles and op-eds from the NYT and its affiliated brands, were used to develop AI models.

The lawsuit alleges that the defendants exploited nearly a century’s worth of copyrighted content, resulting in significant damage to The Times’ financial standing. The NYT argues that OpenAI and Microsoft’s products can "generate output that recites Times content verbatim, closely summarizes it, and mimics its expressive style." This complaint is echoed by other creators, including comedians and authors like Sarah Silverman and Julian Sancton, who argue that OpenAI has benefited from their works without permission.

An OpenAI spokesperson stated their respect for content creators' rights and their commitment to collaborating with them to ensure they gain benefits from AI technology. The spokesperson noted that the lawsuit was unexpected, expressing surprise and disappointment, but maintained hope for a "mutually beneficial way to work together."

If the lawsuit gains traction, it may encourage other publishers to take similar legal action, potentially increasing the costs associated with using published work for AI training. Competitors such as CNN and BBC News have already sought to restrict what data AI web crawlers can access for training purposes.

While it is uncertain whether The NYT is open to a licensing agreement following failed negotiations, OpenAI has recently entered agreements with others. This month, it agreed to compensate publisher Axel Springer for content access in a deal valued at millions. Additionally, articles from Politico and Business Insider will be used to train OpenAI’s next-generation AI tools as part of a three-year agreement. OpenAI previously secured a deal with the Associated Press to access archival content dating back to 1985. Microsoft has not publicly commented on the lawsuit.