New York Times: Explained: Why The New York Times has sued Microsoft, OpenAI and its potential impact on AI-generated content

The New York Times (NYT) is suing OpenAI and Microsoft, alleging that the company’s AI text generators ChatGPT and Copilot infringe on the newspaper’s copyrights. NYT claims that both ChatGPT and Copilot were trained on a massive dataset that included copyrighted New York Times articles. This, the Times argues, constitutes a clear violation of its intellectual property rights.
The lawsuit specifically points to instances where ChatGPT directly quotes or heavily paraphrases Times articles, blurring the lines between original reporting and AI-generated content.


News vs AI

The Times’ lawsuit raises critical questions about how AI is being used in the news industry. While AI holds immense potential for tasks like data analysis and personalisation, its reliance on copyrighted content without proper attribution poses serious ethical and legal challenges. The Times contends that Microsoft and OpenAI have essentially “free-ridden” on their journalistic work, profiting from their content while undermining their value proposition.
“Defendants seek to free-ride on The Times’s massive investment in its journalism,” NYT complained and added that “using The Times’s content without payment to create products that substitute for The Times and steal audiences away from it.”
In the complaint,NYT noted that “If The Times and other news organisations cannot produce and protect their independent journalism, there will be a vacuum that no computer or artificial intelligence can fill. Less journalism will be produced, and the cost to society will be enormous.”
An OpenAI spokesperson said: “We respect the rights of content creators and owners and are committed to working with them to ensure they benefit from AI technology and new revenue models. Our ongoing conversations with The New York Times have been productive and moving forward constructively, so we are surprised and disappointed with this development. We’re hopeful that we will find a mutually beneficial way to work together, as we are doing with many other publishers.”
In April, NYT said that it made attempts to strike a licensing agreement with OpenAI and Microsoft. However, the talks broke down and no resolution was reached.
The Times says that it attempted to reach a licensing arrangement with Microsoft and OpenAI in April but that talks weren’t ultimately fruitful.


Beyond the ‘Times’

The Times’ lawsuit is one of the many that have been filed against content generated by AI. A growing number of writers are raising concerns about the use of AI in generating content. John Grisham, George R R Martin had sued OpenAI earlier this year. Getty Images had also sued an AI company for illegally.
The outcome of the lawsuit could have repercussions for both the media and tech industries. If the court rules in favour of the Times, it could set a precedent that forces tech companies to pay for the use of copyrighted news content in training their AI models. This could lead to increased costs for AI developers and potentially change how generative AI works.
However, a ruling in favour of Microsoft and OpenAI could open the door for even wider use of AI in news production, potentially leading to a proliferation of AI-generated content without proper attribution or quality control. This could further erode trust in journalism and contribute to the spread of misinformation.

The road ahead

The New York Times vs Microsoft and OpenAI lawsuit is just the beginning of a larger conversation about the role of AI in the future of news. This legal battle could end up having a deep impact on how news is produced, consumed, and monetised in the years to come.
The outcome of this lawsuit will be closely watched by news outlets, tech companies, and policymakers around the world. One thing is possible that the implications of the lawsuit will likely extend far beyond the pages of The New York Times.

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