AI

The New York Times wants OpenAI and Microsoft to pay for training data

Comment

New York Times dead trees version of the World Trends page.
Image Credits: mbbirdy / Getty Images

The New York Times is suing OpenAI and its close collaborator (and investor), Microsoft, for allegedly violating copyright law by training generative AI models on Times’ content.

In the lawsuit, filed in the Federal District Court in Manhattan, The Times contends that millions of its articles were used to train AI models, including those underpinning OpenAI’s ultra-popular ChatGPT and Microsoft’s Copilot, without its consent. The Times is calling for OpenAI and Microsoft to “destroy” models and training data containing the offending material and to be held responsible for “billions of dollars in statutory and actual damages” related to the “unlawful copying and use of The Times’s uniquely valuable works.”

“If The Times and other news organizations cannot produce and protect their independent journalism, there will be a vacuum that no computer or artificial intelligence can fill,” reads The Times’ complaint. “Less journalism will be produced, and the cost to society will be enormous.”

In an emailed statement, 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.”

Generative AI models “learn” from examples to craft essays, code, emails, articles and more, and vendors like OpenAI scrape the web for millions to billions of these examples to add to their training sets. Some examples are in the public domain. Others aren’t, or come under restrictive licenses that require citation or specific forms of compensation.

Vendors argue fair use doctrine provides a blanket protection for their web-scraping practices. Copyright holders disagree; hundreds of news organizations are now using code to prevent OpenAI, Google and others from scanning their websites for training data.

The vendor-outlet conflict has led to a growing number of legal battles, The Times’ being the latest.

Actress Sarah Silverman joined a pair of lawsuits in July that accuse Meta and OpenAI of having “ingested” Silverman’s memoir to train their AI models. In a separate suit, thousands of novelists, including Jonathan Franzen and John Grisham, claim OpenAI sourced their work as training data without their permission or knowledge. And several programmers have an ongoing case against Microsoft, OpenAI and GitHub over Copilot, an AI-powered code-generating tool, which the plaintiffs say was developed using their IP-protected code.

While The Times isn’t the first to sue generative AI vendors over alleged IP violations involving written works, it’s the largest publisher involved in such a suit to date — and one of the first to highlight potential damage to its brand through “hallucinations,” or made-up facts from generative AI models.

The Times’ complaint cites several cases in which Microsoft’s Bing Chat (now called Copilot), which is underpinned by an OpenAI model, provided incorrect information that was said to have come from The Times — including results for “the 15 most heart-healthy foods,” 12 of which weren’t mentioned in any Times article.

The Times makes the case, also, that OpenAI and Microsoft are effectively building news publisher competitors using The Times’ works, harming The Times’ business by providing information that couldn’t normally be accessed without a subscription — information that isn’t always cited, sometimes monetized and stripped of affiliate links that The Times uses to generate commissions, moreover.

As The Times’ complaint alludes to, generative AI models have a tendency to regurgitate training data, for example reproducing almost verbatim results from  articles. Beyond regurgitation, OpenAI has on at least one occasion inadvertently enabled ChatGPT users to get around paywalled news content.

“Defendants seek to free-ride on The Times’s massive investment in its journalism,” the complaint says, accusing OpenAI and Microsoft of “using The Times’s content without payment to create products that substitute for The Times and steal audiences away from it.”

Impacts to the news subscription business — and publisher web traffic — is at the heart of a tangentially similar suit filed by publishers earlier in the month against Google. In the case, the plaintiffs, like The Times, argued Google’s GenAI experiments, including its AI-powered Bard chatbot and Search Generative Experience, siphon off publishers’ content, readers and ad revenue through anticompetitive means.

There’s credence to publishers’ assertions. A recent model from The Atlantic found that, if a search engine like Google were to integrate AI into search, it’d answer a user’s query 75% of the time without requiring a click-through to its website. Publishers in the Google suit estimate they’d lose as much as 40% of their traffic.

That doesn’t mean they’ll be successful in court. Heather Meeker, a founding partner at OSS Capital and an adviser on IP matters including licensing arrangements, compared The Times’ example of regurgitation to “using a word processor to cut and paste.”

“In the complaint, The New York Times gives an example of a ChatGPT session about a 2012 restaurant review,” Meeker told TechCrunch via email. “The prompt for ChatGPT is ‘What were the opening paragraphs of his review?’ The next prompts then repeatedly ask for ‘the next sentence.’ Teasing a chatbot into reproducing input is not a sensible basis for copyright infringement … If the user intentionally makes the chatbot copy, that’s the user’s fault. And that’s why most [lawsuits like this] will probably fail.”

Some news outlets, rather than fight generative AI vendors in court, have chosen to ink licensing agreements with them. The Associated Press struck a deal in July with OpenAI, and Axel Springer, the German publisher that owns Politico and Business Insider, did likewise this month.

In its complaint, The Times says that it attempted to reach a licensing arrangement with Microsoft and OpenAI in April but that talks weren’t ultimately fruitful.

Updated at 4:24 Eastern with additional context and comment from OpenAI.

More TechCrunch

Bike-taxi startup Rapido has become the latest Indian startup to become a unicorn, or reach $1 billion in valuation. The eight-year-old firm has raised $120 million in a new funding…

India’s Rapido becomes unicorn with fresh $120 million funding

Government websites aren’t known for cutting-edge tech. GovWell co-founder and CTO Ben Cohen discovered this while trying to help his dad, a contractor, apply for building permits. Cohen worked as…

GovWell is bringing automation and efficiency to local governments

Critics have long argued that wararantless device searches at the U.S. border are unconstitutional and violate the Fourth Amendment.

US border agents must get warrant before cell phone searches, federal court rules

Featured Article

UK’s Zapp EV plans to expand globally with an early start in India

Zapp is launching its urban electric two-wheeler in India in 2025 as it plans to expand globally.

UK’s Zapp EV plans to expand globally with an early start in India

The first time I saw Google’s latest commercial, I wondered, “Is it just me, or is this kind of bad?” By the fourth or fifth time I saw it, I’d…

Dear Google, who wants an AI-written fan letter?

Featured Article

MatPat, the first big YouTuber to successfully exit his company, is lobbying for creators on Capitol Hill

Though MatPat retired from YouTube, he’s still pretty busy. In fact, he’s been spending a lot of time on Capitol Hill.

MatPat, the first big YouTuber to successfully exit his company, is lobbying for creators on Capitol Hill

Featured Article

A tale of two foldables

Samsung is still foldables’ 500-pound gorilla, but the company successes have made the category significantly less lonely in recent years.

A tale of two foldables

The California Department of Motor Vehicles this week granted Nuro approval to test its third-generation R3 autonomous delivery vehicle in four Bay Area cities, giving the AV startup a positive…

Autonomous delivery startup Nuro is gearing up for a comeback

With Ghostery turning 15 years old this month, TechCrunch caught up with CEO Jean-Paul Schmetz to discuss the company’s strategy and the state of ad tracking.

Ghostery’s CEO says regulation won’t save us from ad trackers

Two years ago, workers at an Apple Store in Towson, Maryland were the first to establish a formally recognized union at an Apple retail store in the United States. Now…

Apple reaches its first contract agreement with a US retail union

OpenAI is testing SearchGPT, a new AI search experience to compete directly with Google. The feature aims to elevate search queries with “timely answers” from across the internet and allows…

OpenAI comes for Google with SearchGPT

Indian cryptocurrency exchange WazirX announced on Saturday a controversial plan to “socialize” the $230 million loss from its recent security breach among all its customers, a move that has sent…

WazirX to ‘socialize’ $230 million security breach loss among customers

Featured Article

Stay up-to-date on the amount of venture dollars going to underrepresented founders

Stay up-to-date on the latest funding news for Black and women founders.

Stay up-to-date on the amount of venture dollars going to underrepresented founders

The National Institute of Standards and Technology (NIST), the U.S. Commerce Department agency that develops and tests tech for the U.S. government, companies and the broader public, has re-released a…

NIST releases a tool for testing AI model risk

Featured Article

Max Space reinvents expandable habitats with a 17th-century twist, launching in 2026

Max Space’s expandable habitats promise to be larger, stronger, and more versatile than anything like them ever launched, not to mention cheaper and lighter by far than a solid, machined structure.

Max Space reinvents expandable habitats with a 17th-century twist, launching in 2026

Payments giant Stripe has acquired a four-year-old competitor, Lemon Squeezy, the latter company announced Friday. Terms of the deal were not disclosed. As a merchant of record, Lemon Squeezy calculates…

Stripe acquires payment processing startup Lemon Squeezy

iCloud Private Relay has not been working for some Apple users across major markets, including the U.S., Europe, India and Japan.

Apple reports iCloud Private Relay global outages for some users

Welcome to Startups Weekly — your weekly recap of everything you can’t miss from the world of startups. To get Startups Weekly in your inbox every Friday, sign up here. This…

Legal tech, VC brawls and saying no to big offers

Apple joins 15 other tech companies — including Google, Meta, Microsoft and OpenAI — that committed to the White House’s rules for developing generative AI.

Apple signs the White House’s commitment to AI safety

The language is ambiguous, so it’s not clear whether X is helping itself to all user data for training Grok or whether this processing refers only to user interactions with…

Privacy watchdog says it’s ‘surprised’ by Elon Musk opting user data into Grok AI training

Sound Search on TikTok is somewhat similar to YouTube Music’s song detection tool that lets you find the name of a song by singing, humming or playing it. 

TikTok rolls out a new feature that lets you find songs by singing or humming them

Skip, a wearable tech startup that began as a secretive project inside Alphabet, exited stealth this week to announce a partnership with outdoor clothing specialist Arc’teryx. The deal is the…

Alphabet X spinoff partners with Arc’teryx to bring ‘everyday’ exoskeleton to market

Ledger, a French startup mostly known for its secure crypto hardware wallets, has launched a new mid-range device, the Ledger Flex. Available now, priced at $249, the dinky hardware wallet…

Ledger launches Ledger Flex, a mid-range hardware crypto wallet

The good news is that you can switch off the new data-sharing setting and also delete your conversation history with the AI. 

Here’s how to disable X (Twitter) from using your data to train its Grok AI

Regulators gave SpaceX the all-clear to return to launch two weeks after the Falcon 9 rocket experienced an anomaly on orbit.

SpaceX cleared to resume Falcon 9 launches while FAA investigation remains open

Madison Long and Simone May founded Clutch in 2020 to help connect people to businesses looking for marketing and content creation.

Digital marketing startup Plaiced has acquired Precursor Ventures-backed Clutch

With the CrowdStrike update continuing to cause havoc across the planet, a startup has raised $13.5 million to at least improve some level of security for the kinds of devices…

ZeroTier raises $13.5M to help avert CrowdStrike-like network problems

Apple has reduced prices of its iPhone models in India by 3-4% following a cut in import duties in the South Asian market.

Apple cuts iPhone price in India amid China slowdown

MNT-Halan, a fintech unicorn out of Egypt, is on a consolidation march. The microfinance and payments startup has raised $157.5 million in funding and is using the money in part…

Egypt’s MNT-Halan banks $157.5M, gobbles up a fintech in Turkey to expand

The energy transition is a marathon, not a sprint. But opportunities for acceleration are growing. Swedish startup Greenely* has just spotted one. It’s closing an €8 million Series A funding…

Energy tech startup Greenely grabs €8M to reach more households and support Europe’s energy transition