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Microsoft Slammed for Building Copyright-Infringing Supercomputer for OpenAI in New Court Filing

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Posted by EditorDavid on Sunday June 28, 2026 @07:34PM from the cut-and-paste-and-paste dept.

The New York Times alleges Microsoft actively encouraged OpenAI to steal its copyrighted work, reports Ars Technica, citing a new (and heavily redacted) court filing Thursday: NYT's motion comes after the [U.S.] Supreme Court sided with Cox Communications in a case where Sony tried and failed to claim that Cox was contributing to music piracy as an Internet service provider, which set a new standard for contributory infringement. Moving forward, plaintiffs will have to prove that parties intentionally acted to induce illegal conduct. Recognizing that the legal precedent has changed, the NYT now wants to amend its complaint to align its contributory infringement claim against Microsoft with that new standard... A Microsoft spokesperson told Ars that the company views the amended complaint as "a last-ditch effort by the plaintiff to save its claim from unfavorable precedent set in other recent rulings..."

The updated complaint seeks to specify that [Microsoft's] supercomputer was tailor-made to help OpenAI infringe and allege that it was built for the explicit purpose of training AI on copyrighted works without permission. And as the NYT alleged, its articles were more heavily weighted by this system, as both firms hoped to train models on the highest-quality journalism possible, so that level of writing could be confidently mimicked in outputs. By building this "unusually complex" machine, Microsoft not only helped select the works that were infringed but also provided a means to seize copyrighted works without permission, the NYT alleged. "Microsoft specifically designed it for the purpose of using essentially the whole Internet — curated to disproportionately feature Times Works — to train the most capable LLM in history," the NYT alleged... Similarly as problematic for the NYT are hallucinations where Microsoft and OpenAI models falsely cite the NYT for content that they never published... "Users who ask a search engine what The Times has written on a subject should be provided with neither an unauthorized copy nor an inaccurate forgery of a Times article, but a link to the article itself," the NYT alleged...

In a statement provided to Ars, OpenAI spokesperson Drew Pusateri reiterated the AI firm's often-repeated claims that AI training on copyrighted works is indisputably fair use... OpenAI has argued that "ChatGPT is not a substitute for a Times subscription," the NYT reported, partly because "they transformed the material for a different use."
An OpenAI spokesperson told Ars Technica that OpenAI's models "empower innovation," while a New York Times spokesperson insisted that Microsoft "actively encouraged OpenAI to steal our copyrighted works... [O]ur core claims remain the same from the day we filed this lawsuit — that Microsoft and OpenAI stole millions of The Times's copyrighted works to compete with our products and illegally enrich themselves."

The article speculates that the case's most extreme outcome "could require OpenAI and Microsoft to wipe models and start over. The NYT has also asked for permanent injunctive relief to prevent future infringement, as well as extensive damages..."

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