New York Times (NYSE:NYT) Sues MSFT, OpenAI Over Copyright Infringement

It seems troubles are compounding for OpenAI and Microsoft (NASDAQ:MSFT) over the unauthorized use of online content to train their AI tools. According to the Wall Street Journal, the New York Times (NYSE:NYT) has sued the two tech companies over alleged copyright infringement.

In its complaint, NYT has alleged that Open AI and MSFT used its content without permission to create their AI tools, including OpenAI’s ChatGPT and MSFT’s Copilot. Reportedly, the AI tools trained on a vast number of NYT content pieces and bank on the material to dish out answers to user prompts.

This action from NYT could have wider consequences for content creators, authors, and news publishers. Recently, a group of Pulitzer Prize-winning authors joined a lawsuit where OpenAI and MSFT are accused of misusing the authors’ works to train the models that power their AI chatbots.

Publishers, including NYT, have alleged that these AI products divert online traffic away from their online properties. This deprives content creators of multiple revenue streams and footfalls. Notably, NYT believes that it is one of the biggest sources of proprietary information for OpenAI and MSFT’s AI tools.

Now, NYT wants the data sets that include its work to be destroyed. It is also seeking damages. The action from NYT comes after it tried to chalk out a commercial deal with OpenAI and MSFT for the use of its content. Previously, OpenAI entered into a multi-year global content licensing deal with Axel Springer. Consequently, OpenAI will pay for the content it uses from Axel’s publications to generate answers in ChatGPT and train its AI solutions.

What is a Good Price for MSFT?

Meanwhile, Microsoft remains one of the biggest profit generators for investors this year, with a gain of over 56%. Overall, the Street has a Strong Buy consensus rating on Microsoft and the average MSFT price target of $422.91 points to a further 12.9% potential upside in the stock.

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