Microsoft, OpenAI knew of copyright concerns, NYT alleges

The New York Times has levelled fresh allegations that Microsoft and OpenAI knowingly used copyrighted news content to train their AI systems without authorisation, according to court filings in a high-profile lawsuit. The claims suggest both companies understood the legal and ethical implications of their data practices but proceeded regardless. The dispute centres on whether news organisations' intellectual property was properly compensated when used to develop generative AI technologies. OpenAI has since moved to sign content licensing agreements with major global news publishers following ChatGPT's November 2022 launch, addressing some industry concerns. However, publishers and news outlets remain sceptical about the effectiveness of these deals in stemming broader traffic declines attributed to AI-driven search and summarisation tools. The arrangement raises questions about whether licensing agreements adequately compensate creators whose work was already used during AI model development. Industry observers note that while individual deals offer some revenue recovery, they do not resolve underlying concerns about AI systems reducing reader engagement with original news sources. The case underscores mounting tensions between technology companies developing large language models and traditional media organisations seeking protection for their content and business models.