NYT slams Microsoft for building copyright-infringing supercomputer for OpenAI

In 2023, the NYT became the first major publisher to sue OpenAI. The prominent newspaper alleged that ChatGPT was illegally trained on its articles, infringed on its copyrights by outputting articles verbatim, and caused market harms by positioning ChatGPT as a substitute for a NYT subscription, as well as reputational harms by falsely attributing claims to NYT reporting. Additionally, ChatGPT outputs summarizing Wirecutter reviews robbed writers of commissions from lost clicks on affiliate links, the NYT alleged. In the initial complaint, the NYT discussed Microsoft’s supercomputing systems as if they were providing generic cloud computing services. The updated complaint seeks to specify that the supercomputer was tailor-made to help OpenAI infringe and allege that it was built for the explicit purpose of training AI on copyrighted works without permission. And as the NYT alleged, its articles were more heavily weighted by this system, as both firms hoped to train models on the highest-quality journalism possible, so that level of writing could be confidently mimicked in outputs. By building this “unusually complex” machine, Microsoft not only helped select the works that were infringed but also provided a means to seize copyrighted works without permission, the NYT alleged. “Microsoft specifically designed it for the purpose of using essentially the whole Internet—curated to disproportionately feature Times Works—to train the most capable LLM in history,” the NYT alleged. And now it’s allegedly unfairly profiting. “Microsoft’s deployment of Times-trained LLMs throughout its product line helped boost its market capitalization by a trillion dollars in the past year alone,” the NYT alleged.