Skip to main content
RegulationBusiness

AI training built on fair use looks shaky when the companies' own people call it "astonishing theft"

Source: The Decoder (opens in a new tab) · Matthias Bastian

Intel Summary

Internal emails and sworn testimony have surfaced challenging OpenAI and Microsoft's fair use defense in AI training. According to reported records, a Microsoft director termed the practice the "largest theft of labor in human history," while OpenAI's head of ChatGPT noted their products are "largely substitutive, period."

Why It Matters

Admissions of market substitution and labor appropriation directly challenge the legal argument that generative AI training constitutes transformative fair use. If credited in litigation, these internal statements could expose model developers to substantial copyright liabilities and force mandatory data licensing models.

Part of an ongoing development

Source

Unsealed court filings reveal Microsoft executive calling AI scraping theft

Newly unsealed court filings reveal that a Microsoft executive privately characterized OpenAI's data harvesting as "theft" and "the largest theft of labor in human history." The records indicate that both companies scraped paywalled content from The New York Times to build datasets, despite internal warnings that doing so would financially undermine publishers. Claims are as reported; this summary makes no determination about accuracy or significance.

Organizations & Entities