US newspapers take OpenAI and Microsoft to court over news content

Saturday 05 - 13:13

By: Azzat Manal

US newspapers take OpenAI and Microsoft to court over news content

Two major US newspapers have escalated the growing dispute between the media industry and artificial intelligence companies by filing a lawsuit against OpenAI and Microsoft over the alleged use of journalistic content without authorization.

The Seattle Times and Newsday filed the case in the US District Court for the Southern District of New York, arguing that their published material was collected and used in the development and operation of AI systems. The newspapers allege that the material included articles and reports placed behind subscription paywalls.

According to the publishers, advanced AI models can generate responses and passages that closely reflect the substance of original news reports. They argue that this could encourage users to obtain information directly through AI-powered tools rather than visiting news websites or paying for subscriptions.

The dispute highlights a growing concern within the media industry over the economic consequences of generative AI. Producing original journalism, particularly investigative reporting and local news, requires significant investment in reporters, editors, technology and other resources. Publishers fear that AI systems could benefit from this work without providing adequate compensation in return.

Alan Fisco, president and chief executive of The Seattle Times, has emphasized the substantial investment required to produce the newspaper’s content and argued that publishers should be able to protect their work from unauthorized use while receiving fair compensation when their material contributes to commercial AI products.

OpenAI has defended its approach to training AI systems, maintaining that its models can rely on publicly available information and that such use may be protected under the principle of fair use. The company has not, however, publicly addressed all of the specific allegations contained in the latest lawsuit.

Microsoft, meanwhile, said it was surprised by the legal action while emphasizing the importance of local journalism. The technology company indicated that it remains open to discussions with news organizations and to finding solutions to disputes surrounding the use of published content.

The lawsuit forms part of a much broader legal and commercial debate over how copyrighted material available online can be used to train artificial intelligence systems. Publishers and technology companies have yet to reach a universal agreement on when such use requires permission, licensing arrangements or financial compensation.

For media organizations, the issue goes beyond copyright protection. Many publishers are concerned that AI-generated answers could reduce traffic to their websites, potentially weakening advertising revenue, subscriptions and other business models that support professional journalism.

Technology companies, on the other hand, argue that access to large volumes of information is essential for developing AI systems capable of understanding and generating high-quality language. This has created an increasingly complex conflict between technological innovation and the economic interests of content creators.

The case involving The Seattle Times and Newsday could therefore become another important test of the legal boundaries surrounding AI training and news content. Its outcome may influence how technology companies negotiate with publishers and how intellectual property rules are applied to rapidly evolving AI technologies.

As artificial intelligence becomes increasingly integrated into search, news discovery and everyday information services, the relationship between AI developers and traditional media organizations is likely to remain a major source of legal and commercial tension.