Introduction

Eight newspapers have recently taken legal action against Microsoft and OpenAI, accusing them of illegally using their copyrighted articles as part of their artificial intelligence products. The companies are accused of utilizing these articles to train their generative AI software for significant commercial gain.

The Lawsuit and Allegations

Chicago Tribune, New York Daily News, Orlando Sentinel, and other Tribune Publishing and MediaNews Group newspapers have filed a lawsuit in the Southern District of New York. The publishers claim that OpenAI and Microsoft have taken millions of articles without permission or compensation, enabling them to enhance their AI capabilities and drive their businesses forward.

Although OpenAI, a former non-profit organization, has recently achieved a valuation of $90 billion, the lawsuit argues that such enormous commercial success no longer aligns with their initial nonprofit status. Additionally, Microsoft’s Copilot has significantly contributed to the tech giant’s impressive market capitalization growth in the past year.

Seeking Compensation and Justice

The plaintiffs are seeking compensatory damages and restitution, the cessation of infringement upon their content by the software companies, and a jury trial. Furthermore, they demand the “destruction” of models and training sets that rely on their content.

The Impact on the Newspaper Industry

The dwindling trajectory of the newspaper industry has been further affected by the rise of artificial intelligence. With declining subscribers and diminishing advertising revenues, media companies have been struggling for over two decades.

A Northwestern University study revealed that thirty-three percent of U.S. newspapers have ceased operations since 2005, and two-thirds of newspaper journalism jobs have been eliminated. Prominent media entities, including the Washington Post and NPR, have been forced to lay off hundreds of journalists.

The Significance of Local News

A critical concern voiced in the lawsuit is that the threat posed by AI extends beyond the newspaper industry to civic life in America itself. Local news, the bedrock of democracy, is jeopardized by the alleged actions taken by OpenAI and Microsoft.

The AI Content Extraction Process

The lawsuit alleges that Microsoft and OpenAI employ content “scraping” to obtain articles from newspapers, enabling their software to generate content nearly identical to that of the newspapers. OpenAI’s founder, Sam Altman, has previously stated that the company’s ability to create commercially viable generative AI products hinges on the utilization of copyrighted material.

Microsoft and OpenAI have faced multiple copyright lawsuits for similar reasons in both New York and San Francisco’s federal courts.

Statements from the Companies

Microsoft has declined to comment on the ongoing legal matter. On the other hand, OpenAI released a statement expressing their surprise regarding Alden Global Capital’s concerns, while maintaining their commitment to engaging in constructive partnerships and discussions to address any worries and provide solutions.

Conclusion

The lawsuit serves as yet another example of the challenges faced by the newspaper industry and the broader implications of AI’s unchecked exploitation. As the legal battle unfolds, the future of the relationship between tech giants and traditional media hangs in the balance.