Policy · Arab News ·

OpenAI, Microsoft Exec Quotes Threaten AI Copyright Fair-Use Defense

Court filings reveal OpenAI and Microsoft executives described AI products as 'substitutes' for journalism, undermining their fair-use defense in the NYT copyright lawsuit.

Based on reporting by Arab News — analysis by dalili

OpenAI and Microsoft executives privately described their AI products as substitutes for journalism, according to court filings made public on Thursday that the New York Times and other news outlets say gut the tech companies' fair-use defense in a closely watched copyright case.

OpenAI and Microsoft have argued in the Manhattan federal court case that their AI training on millions of newspaper articles is protected as fair use because it transforms copyrighted material into new content and does not compete with or replace the news organizations' journalism.

Previously redacted portions of the filing made public Thursday revealed quotes from OpenAI co-founder Greg Brockman, Microsoft CEO Satya Nadella, and others during discovery that the news organizations say "eviscerate" the fair-use defense.

The outlets quoted OpenAI's head of ChatGPT, Nick Turley, as saying that publishers face an "existential threat" from their products, which are "largely substitutive" and "will get more and more substitutive as they get better."

Spokespeople for OpenAI and Microsoft pushed back, saying the quotes were taken out of context and that their products drive significant traffic to news sources. But the plaintiffs argue the internal language tells a different story — one where AI products are explicitly designed to replace the very content they train on.

The case is being watched closely across the tech and media industries, as its outcome could set precedent for how AI training on copyrighted material is treated under US law.

Key takeaways

  • Court filings reveal OpenAI, Microsoft execs called AI products 'substitutes' for journalism
  • ChatGPT head Nick Turley said publishers face 'existential threat' from their products
  • Quotes could 'eviscerate' fair-use defense in Manhattan federal court case
  • Outcome may set precedent for AI training on copyrighted material under US law

Why it matters

This case could redefine the boundaries of fair use in the AI era. If internal exec quotes describing AI as a journalism 'substitute' undermine the fair-use defense, it could force AI labs to license training data — fundamentally changing the economics of frontier model development.

Related

  1. TechCrunch ·

    NYC Mayor Mamdani: Federal AI Abdication Leaves Cities to Act Alone

  2. TechCrunch ·

    Anthropic commits 5% of shares to public benefit fund