New York Times sues OpenAI, Microsoft

Claims articles are being replicated for free, seeks 'billions' in damages

The New York Times is suing OpenAI and Microsoft, alleging copyright infringement and IP abuse over AI training materials.

The Christmas-New Year period is traditionally a quiet one, but that didn't stop the New York Times from launching a lawsuit against ChatGPT-developer OpenAI and its investor Microsoft on the 27th December.

In a filing in the Federal District Court in Manhattan, The Times claims that "millions" of its articles have been used to train automated systems, which are now competing with the publication.

In a statement to CNBC, The Times said it recognises the "power and potential" of generative AI in journalism, but that journalistic material should not be used for commercial gain without permission from the original source.

It added, "These tools were built with and continue to use independent journalism and content that is only available because we and our peers reported, edited, and fact-checked it at high cost and with considerable expertise.

"Settled copyright law protects our journalism and content. If Microsoft and OpenAI want to use our work for commercial purposes, the law requires that they first obtain our permission. They have not done so."

Seeking "billions"

While the lawsuit does not mention an actual figure, it seeks to hold Microsoft and OpenAI accountable for "billions of dollars in statutory and actual damages" The Times believes it has suffered as a result of the "unlawful copying" of its work.

It also calls for the companies to destroy any chatbot models and training data using The Times' copyrighted material.

The Times' complaint says the company approached Microsoft and OpenAI in April 2023, seeking an "amicable resolution" to the matter. That could have involved "commercial terms and technological guardrails." However, it adds, "these efforts have not produced a resolution."

OpenAI, for its part, says it is "surprised" and "disappointed" with the lawsuit. Spokesperson Lindsey Held said in a statement that OpenAI had been "moving forward constructively" in conversations with The Times. She added, "We're hopeful that we will find a mutually beneficial way to work together, as we are doing with many other publishers."

A growing movement

This is far from the first legal action specifically targeting AI systems and companies over copyright infringement. There are nine separate lawsuits ongoing in the US alone, launched by both individuals and companies.

As with previous technical advancements, like file-sharing, AI technology is a new challenge for the legal sector. AI companies, too, are getting to grips with the new normal; Microsoft, for example, said in September that it would cover costs for customers of its AI technology, if they were hit by copyright claims.

A central pillar of The Times' complaint is that AI tools like ChatGPT can replicate their own articles without any benefit to the original source, in terms of displayed adverts; traffic; and referral links. They may also give incorrect information through hallucinations, which is then wrongly attributed to a reputable outlet.

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