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

Zoox, Amazon’s self-driving unit, is bringing its autonomous vehicles to more cities.  The self-driving technology company announced Wednesday plans to begin testing in Austin and Miami this summer. The two…

Zoox to test self-driving cars in Austin and Miami 

Called Stable Audio Open, the generative model takes a text description and outputs a recording up to 47 seconds in length.

Stability AI releases a sound generator

It’s not just instant-delivery startups that are struggling. Oda, the Norway-based online supermarket delivery startup, has confirmed layoffs of 150 jobs as it drastically scales back its expansion ambitions to…

SoftBank-backed grocery startup Oda lays off 150, resets focus on Norway and Sweden

Newsletter platform Substack is introducing the ability for writers to send videos to their subscribers via Chat, its direct messaging feature, the company announced on Wednesday. The rollout of video…

Substack brings video to its Chat feature

Hiya, folks, and welcome to TechCrunch’s inaugural AI newsletter. It’s truly a thrill to type those words — this one’s been long in the making, and we’re excited to finally…

This Week in AI: Ex-OpenAI staff call for safety and transparency

Ms. Rachel isn’t a household name, but if you spend a lot of time with toddlers, she might as well be a rockstar. She’s like Steve from Blues Clues for…

Cameo fumbles on Ms. Rachel fundraiser as fans receive credits instead of videos  

Cartwheel helps animators go from zero to basic movement, so creating a scene or character with elementary motions like taking a step, swatting a fly or sitting down is easier.

Cartwheel generates 3D animations from scratch to power up creators

The new tool, which is set to arrive in Wix’s app builder tool this week, guides users through a chatbot-like interface to understand the goals, intent and aesthetic of their…

Wix’s new tool taps AI to generate smartphone apps

ClickUp Knowledge Management combines a new wiki-like editor and with a new AI system that can also bring in data from Google Drive, Dropbox, Confluence, Figma and other sources.

ClickUp wants to take on Notion and Confluence with its new AI-based Knowledge Base

New York City, home to over 60,000 gig delivery workers, has been cracking down on cheap, uncertified e-bikes that have resulted in battery fires across the city.  Some e-bike providers…

Whizz wants to own the delivery e-bike subscription space, starting with NYC

This is the last major step before Starliner can be certified as an operational crew system, and the first Starliner mission is expected to launch in 2025. 

Boeing’s Starliner astronaut capsule is en route to the ISS 

TechCrunch Disrupt 2024 in San Francisco is the must-attend event for startup founders aiming to make their mark in the tech world. This year, founders have three exciting ways to…

Three ways founders can shine at TechCrunch Disrupt 2024

Google’s newest startup program, announced on Wednesday, aims to bring AI technology to the public sector. The newly launched “Google for Startups AI Academy: American Infrastructure” will offer participants hands-on…

Google’s new startup program focuses on bringing AI to public infrastructure

eBay’s newest AI feature allows sellers to replace image backgrounds with AI-generated backdrops. The tool is now available for iOS users in the U.S., U.K., and Germany. It’ll gradually roll…

eBay debuts AI-powered background tool to enhance product images

If you’re anything like me, you’ve tried every to-do list app and productivity system, only to find yourself giving up sooner than later because sooner than later, managing your productivity…

Hoop uses AI to automatically manage your to-do list

Asana is using its work graph to train LLMs with the goal of creating AI assistants that work alongside human employees in company workflows.

Asana introduces ‘AI teammates’ designed to work alongside human employees

Taloflow, an early stage startup changing the way companies evaluate and select software, has raised $1.3M in a seed round.

Taloflow puts AI to work on software vendor selection to reduce cost and save time

The startup is hoping its durable filters can make metals refining and battery recycling more efficient, too.

SiTration uses silicon wafers to reclaim critical minerals from mining waste

Spun out of Bosch, Dive wants to change how manufacturers use computer simulations by both using modern mathematical approaches and cloud computing.

Dive goes cloud-native for its computational fluid dynamics simulation service

The tension between incumbents and fintechs has existed for decades. But every once in a while, the two groups decide to put their competition aside and work together. In an…

When foes become friends: Capital One partners with fintech giants Stripe, Adyen to prevent fraud

After growing 500% year-over-year in the past year, Understory is now launching a product focused on the renewable energy sector.

Insurance provider Understory gets into renewable energy following $15M Series A

Ashkenazi will start her new role at Google’s parent company on July 31, after 23 years at Eli Lilly.

Alphabet brings on Eli Lilly’s Anat Ashkenazi as CFO

Tobiko aims to reimagine how teams work with data by offering a dbt-compatible data transformation platform.

With $21.8M in funding, Tobiko aims to build a modern data platform

In 1816, French physician René Laennec invented an instrument that allowed doctors to listen to the heart and lungs. That device — a stethoscope — eventually evolved from a simple…

Eko Health scores $41M to detect heart and lung disease earlier and more accurately

The number of satellites on low Earth orbit is poised to explode over the coming years as more mega-constellations come online. This will create new opportunities for bad actors to…

DARPA and Slingshot build system to detect ‘wolf in sheep’s clothing’ adversary satellites

SAP sees WalkMe’s focus on automating contextual, in-app support as bringing value to its own enterprise customers.

SAP to acquire digital adoption platform WalkMe for $1.5B

The National Democratic Alliance (NDA) has emerged victorious in India’s 2024 general election, but with a smaller majority compared to 2019. According to post-election analysis by Goldman Sachs, JPMorgan, CLSA,…

Modi-led coalition’s election win signals policy continuity in India — and spending cuts

Featured Article

A comprehensive list of 2024 tech layoffs

The tech layoff wave is still going strong in 2024. Following significant workforce reductions in 2022 and 2023, this year has already seen 60,000 job cuts across 254 companies, according to independent layoffs tracker Layoffs.fyi. Companies like Tesla, Amazon, Google, TikTok, Snap and Microsoft have conducted sizable layoffs in the…

21 hours ago
A comprehensive list of 2024 tech layoffs

Featured Article

What to expect from WWDC 2024: iOS 18, macOS 15 and so much AI

Apple is hoping to make WWDC 2024 memorable as it finally spells out its generative AI plans.

22 hours ago
What to expect from WWDC 2024: iOS 18, macOS 15 and so much AI

We just announced the breakout session winners last week. Now meet the roundtable sessions that really “rounded” out the competition for this year’s Disrupt 2024 audience choice program. With five…

The votes are in: Meet the Disrupt 2024 audience choice roundtable winners