The New York Times sued Microsoft and OpenAI for copyright infringement, marking the first major American media company to pursue a legal battle against the creators of ChatGPT.
Read Also: News Outlets Call for Petition for AI Training Data Rules
Microsoft, OpenAI Allegedly Used Millions of Articles
The Times filed the lawsuit in the Federal District Court in Manhattan, citing that millions of articles in the publications were used to train chatbots. Due to the articles being used as training materials, the AI models are now able to compete with the news outlet by posing as a source of reliable information.
While the suit does not indicate an exact monetary demand for the damages, it was stated in the file that the defendants should be responsible for "billions of dollars in statutory and actual damages." Moreover, there was also an emphasis on the unlawful copying and use of the articles from the publication.
"Defendants seek to free-ride on The Times's massive investment in its journalism," the complaint states as the publication claims that OpenAI and Microsoft are using their content without any payment.
Microsoft, OpenAI Faces Copyright Issues
Last August, reports showed that both companies are under negotiation as The Times seeks a licensing deal that would require OpenAI to pay for any content that will be used to train their AI. Given the current situation, the companies have probably failed to settle their negotiation.
Meanwhile, OpenAI had already struck an agreement with the Associated Press that allowed the company to access some of the publication's archives. The AI giant now also has a three-year deal this December with Axel Springer SE, allowing them to use German media.
"If Microsoft and OpenAI want to use our work for commercial purposes, the law requires that they first obtain our permission," a New York Times spokesperson stated. However, both Microsoft and OpenAI have failed to do so.
Related Article: The New York Times Might Take Legal Action Against OpenAI
