Legal Battle Ignites: The New York Times Sues OpenAI and Microsoft Over AI Copyright Infringement

The New York Times has filed a lawsuit against OpenAI and Microsoft, marking a significant development in the ongoing debate about the use of copyrighted material for training AI models. According to reports from Reuters and Engadget, the lawsuit accuses the companies of using millions of the newspaper's articles without permission to train their AI chatbots, which include popular platforms like ChatGPT and Bing Chat (now known as Copilot).

The lawsuit, filed in Manhattan federal court, alleges that OpenAI and Microsoft have been "free-riding" on The Times's investment in journalism to create products that substitute for The Times and potentially draw audiences away from it. The Times has not specified a particular amount in damages but estimates the value in the "billions of dollars". Additionally, the lawsuit seeks for the companies to destroy chatbot models and training sets that incorporate The Times's material.

This case is notable as it's the first major U.S. media organization to take legal action against OpenAI and Microsoft for copyright issues related to AI-generated content. The lawsuit highlights a broader struggle among major media organizations to attract and retain readers in the face of new AI technologies that might reduce the need for consumers to visit original content sources.

Furthermore, the lawsuit underscores the challenges in distinguishing fact from fiction, especially when AI technology might falsely attribute information to reputable sources. This aspect of AI-generated content, often referred to as a "hallucination" in AI parlance, presents concerns about misinformation.

The case reflects growing concerns and legal challenges surrounding the use of online content to train AI systems, a practice commonly known as 'scraping'. Other authors and public figures have also initiated legal action against AI companies for similar reasons.