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New lawsuit details reveal Microsoft and OpenAI admitted AI training on copyrighted content is theft and threatens publishers.

Market News
17 Sep 2026
TechCrunch
View Source
Bearish
New lawsuit details reveal Microsoft and OpenAI admitted AI training on copyrighted content is theft and threatens publishers.

Newly unsealed documents in a three-year-old copyright lawsuit by The New York Times against OpenAI and Microsoft reveal internal admissions that AI training on copyrighted content amounts to theft and poses an existential threat to publishers. Microsoft executives described the practice as "theft" and acknowledged that AI products like ChatGPT substitute original news content, harming publishers' revenues significantly. The companies allegedly bypassed paywalls and stripped copyright notices to build massive training datasets, including over 91,000 works from major news outlets. This challenges the fair use defense AI firms rely on, as internal data shows AI-driven search reduced traffic to The New York Times by up to 93%. The case highlights ongoing legal and ethical debates over AI's use of copyrighted material and its impact on journalism.

As of Sep 18, 2026 03:02 WIB, Microsoft (MSFT) shares are trading at USD 497.90, up 1.55% on Pluang, despite the controversy over AI training practices. Meanwhile, The New York Times Co (NYT) stock is down 3.68% at USD 69.75, with all Pluang order activity currently on the buy side. Microsoft’s market cap stands at $3.64 trillion, highlighting its massive scale amid ongoing legal scrutiny.

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