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NYT slams Microsoft for building copyright-infringing supercomputer for OpenAI
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The New York Times has escalated its copyright battle against Microsoft and OpenAI, filing a motion in court on Thursday to amend its complaint with new allegations that Microsoft actively encouraged OpenAI to infringe on the newspaper's copyrighted works by building a bespoke supercomputing system. The amended complaint seeks to align with a recent Supreme Court ruling that raised the bar for proving contributory infringement, requiring plaintiffs to show that defendants intentionally induced illegal conduct. This development marks a significant shift in the high-profile legal dispute over the use of copyrighted news articles to train artificial intelligence models.
The case stems from a lawsuit filed by The New York Times in December 2023, accusing OpenAI and Microsoft of using millions of its copyrighted articles without permission to develop competing AI products, such as ChatGPT and Microsoft's Copilot. The original complaint included claims of direct copyright infringement, contributory infringement, and trademark dilution. The new motion, heavily redacted, focuses on strengthening the contributory infringement claim against Microsoft, alleging that the tech giant provided OpenAI with a supercomputer ranked among the world's most powerful to facilitate the unauthorized use of NYT content.
According to the motion, The New York Times is also voluntarily dismissing two claims of contributory copyright infringement and trademark dilution against all defendants, streamlining the case to its strongest arguments. The newspaper's spokesperson, Graham James, stated that the amendment is based on new law and evidence uncovered during discovery. He emphasized that the core allegation remains that Microsoft and OpenAI stole millions of copyrighted works to compete with the Times's products and illegally enrich themselves.
Microsoft responded by dismissing the amended complaint as a last-ditch effort to salvage a claim weakened by unfavorable legal precedents. A Microsoft spokesperson told Ars Technica that the company views the motion as an attempt to circumvent recent rulings, including a Supreme Court decision that established a stricter standard for contributory infringement. The Supreme Court had sided with Cox Communications in a case involving music piracy, ruling that internet service providers could only be liable if they actively induced infringement.
The New York Times argued that neither Microsoft nor OpenAI would be prejudiced by the amendment, as the legal standard had changed and no additional discovery is sought. The motion asserts that the schedule will not be disrupted, and the amended complaint simply clarifies existing claims. The newspaper's legal team contends that allowing the revision is proper under procedural rules, especially given the new evidence uncovered during discovery.
Legal experts note that the amended complaint could have far-reaching implications for AI companies relying on copyrighted data for training. If the court accepts the new allegations, it could set a precedent for holding technology partners like Microsoft liable for providing infrastructure used in copyright infringement. The case is being closely watched by the publishing industry, which has increasingly challenged AI companies over unauthorized use of content.
Looking ahead, the court will decide whether to grant The New York Times's request to amend its complaint. A hearing is expected in the coming weeks. Regardless of the outcome, the lawsuit highlights the growing tension between AI developers and content creators over intellectual property rights. The resolution of this case may shape future regulations governing the use of copyrighted materials in AI training datasets.
