Publishers sue OpenAI and Microsoft over alleged use of news content to train AI models

A coalition representing nearly 400 newspapers has filed a copyright lawsuit against OpenAI and Microsoft for allegedly using copyrighted journalism to train generative AI models without permission. The legal action, filed in the US District Court for the Southern District of New York, claims the tech companies built tools like ChatGPT and Copilot by crawling news sites and reproducing content. This case is significant for the Publishing & Content sector as it specifically addresses the impact of AI training on local and regional news organizations.

The lawsuit filed in the US District Court for the Southern District of New York alleges that OpenAI and Microsoft built their large language models by crawling news websites and copying editorial content without authorization. The publishers, representing nearly 400 newspapers, claim the tech companies removed copyright management information and reproduced portions of their work in AI-generated responses. This practice allegedly allows AI developers to capture billions in market value while the original content creators, who spend heavily on journalism and paywall infrastructure, receive no compensation.

Matthew Platkin, the lead attorney for the publishers and former New Jersey Attorney General, noted that this litigation represents the largest legal challenge brought by local and regional newspapers against AI firms. He pointed out that earlier copyright lawsuits have largely centered on major media organizations, leaving local outlets vulnerable. Platkin asserted that local journalism is a vital community resource and one of the most trusted news sources for Americans, necessitating a resolution that includes smaller players in the industry.

OpenAI has rejected the allegations, with spokesperson Drew Pusateri stating that the company's models are trained on publicly available data under fair use principles to support innovation. The plaintiffs are seeking statutory damages and injunctive relief for alleged copyright infringement and violations of the Digital Millennium Copyright Act. This lawsuit adds to a growing list of legal disputes in the publishing sector, following similar actions by organizations like The New York Times, CNN, and Reddit against AI developers such as Perplexity AI.