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Microsoft-Backed OpenAI Sued For Copyright Infringement
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Microsoft-Backed OpenAI Sued For Copyright Infringement

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OpenAI, backed by Microsoft, is being sued by a nonprofit newsroom, CIR.

OpenAI, backed by Microsoft (NASDAQ:MSFT), is being sued by the Center for Investigative Reporting (CIR) in Federal Court for alleged copyright infringement. This is similar to other suits that have been filed by other publications, including the New York Times, Chicago Tribune, and the New York Daily News. CIR is the U.S.’s oldest nonprofit newsroom. These publications have also filed lawsuits alleging the appearance of journalistic content appearing in the training data for ChatGPT.

Details of the CIR’s Lawsuit Against Microsoft

The CIR has claimed in the lawsuit, filed in the Southern District of New York, that OpenAI used its content without permission or paying any compensation to CIR. Since the release of OpenAI’s ChatGPT in late 2022, it has frequently answered user queries using copy pulled directly from news content. The plaintiffs have stated in their lawsuit that OpenAI has chosen not to respect journalism when training their model.

Monika Bauerlein, CEO of CIR, has accused OpenAI and Microsoft of “free rider behavior,” using their stories without permission or compensation. Furthermore, the CIR has also claimed that OpenAI trained ChatGPT to ignore copyright without permission.

CIR is seeking actual damages and profits, or statutory damages of at least $750 per infringed work and $2,500 for every violation of the Digital Millennium Copyright Act (DMCA).

Is Microsoft a Buy, Sell, or Hold?

Analysts remain bullish about MSFT stock, with a Strong Buy consensus rating based on 34 Buys and one Hold. Over the past year, MSFT has surged by more than 30%, and the average MSFT price target of $500.71 implies an upside potential of 10.6% from current levels.

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