Connect with us

Published

on

New York Times sues OpenAI, Microsoft for copyright infringement

The New York Times on Wednesday filed a lawsuit against Microsoft and OpenAI, creator of the popular AI chatbot ChatGPT, accusing the companies of copyright infringement and abusing the newspaper’s intellectual property to train large language models.

Microsoft both invests in and supplies OpenAI, providing it with access to the company’s Azure cloud computing technology.

The publisher said in a filing in the U.S. District Court for the Southern District of New York that it seeks to hold Microsoft and OpenAI to account for the “billions of dollars in statutory and actual damages” it believes it is owed for the “unlawful copying and use of The Times’s uniquely valuable works.”

The Times said in an emailed statement that it “recognizes the power and potential of GenAI for the public and for journalism,” but added that journalistic material should be used for commercial gain with permission from the original source.

“These tools were built with and continue to use independent journalism and content that is only available because we and our peers reported, edited, and fact-checked it at high cost and with considerable expertise,” the Times said.

The New York Times Building in New York City on February 1, 2022.

Angela Weiss | AFP | Getty Images

“Settled copyright law protects our journalism and content,” the Times added. “If Microsoft and OpenAI want to use our work for commercial purposes, the law requires that they first obtain our permission. They have not done so.”

“We respect the rights of content creators and owners and are committed to working with them to ensure they benefit from AI technology and new revenue models,” an OpenAI representative said in a statement. “Our ongoing conversations with the New York Times have been productive and moving forward constructively, so we are surprised and disappointed with this development. We’re hopeful that we will find a mutually beneficial way to work together, as we are doing with many other publishers.”

A representative for Microsoft didn’t respond to requests for comment.

The Times is represented in the proceedings by Susman Godfrey, the litigation firm that represented Dominion Voting Systems in its defamation suit against Fox News that culminated in a $787.5 million million settlement.

Susman Godfrey is also representing author Julian Sancton and other writers in a separate lawsuit against OpenAI and Microsoft that accuses the companies of using copyrighted materials without permission to train several versions of ChatGPT.

‘Mass copyright infringement’

The Times is one of numerous media organizations pursuing compensation from companies behind some of the most advanced artificial intelligence models, for the alleged usage of their content to train AI programs.

OpenAI is the creator of GPT, a large language model that can produce humanlike content in response to user prompts. It uses billions of parameters’ worth of information, which is obtained from public web data up until 2021.

Media publishers and content creators are finding their materials being used and reimagined by generative AI tools like ChatGPT, Dall-E, Midjourney and Stable Diffusion. In numerous cases, the content the programs produce can look similar to the source material.

OpenAI has tried to allay news publishers’ concerns. In December, the company announced a partnership with Axel Springer — the parent company of Business Insider, Politico, and European outlets Bild and Welt — which would license its content to OpenAI in return for a fee.

The financial terms of the deal weren’t disclosed.

In its lawsuit Wednesday, the Times accused Microsoft and OpenAI of creating a business model based on “mass copyright infringement,” stating that the companies’ AI systems were “used to create multiple reproductions of The Times’s intellectual property for the purpose of creating the GPT models that exploit and, in many cases, retain large portions of the copyrightable expression contained in those works.”

Publishers are concerned that, with the advent of generative AI chatbots, fewer people will click through to news sites, resulting in shrinking traffic and revenues.

The Times included numerous examples in the suit of instances where GPT-4 produced altered versions of material published by the newspaper.

In one example, the filing shows OpenAI’s software producing almost identical text to a Times article about predatory lending practices in New York City’s taxi industry.

But in OpenAI’s version, GPT-4 excludes a critical piece of context about the sum of money the city made selling taxi medallions and collecting taxes on private sales.

In its suit, the Times said Microsoft and OpenAI’s GPT models “directly compete with Times content.”

The AI models also limited the Times’ commercial opportunities by altering its content. For example, the publisher alleges GPT outputs remove links to products featured in its Wirecutter app, a product reviews platform, “thereby depriving The Times of the opportunity to receive referral revenue and appropriating that opportunity for Defendants.”

The Times also alleged Microsoft and OpenAI models produce content similar to that generated by the newspaper, and that their use of its content to train LLMs without consent “constitutes free-riding on The Times’s significant efforts and investment of human capital to gather this information.”

The Times said Microsoft and OpenAI’s LLMs “can generate output that recites Times content verbatim, closely summarizes it, and mimics its expressive style,” and “wrongly attribute false information to The Times,” and “deprive The Times of subscription, licensing, advertising, and affiliate revenue.”

CNBC’s Rohan Goswami contributed to this report.

Don’t miss these stories from CNBC PRO:

Continue Reading

Technology

Tencent reports profit beat on games growth, touts AI benefits

Published

on

By

Tencent reports profit beat on games growth, touts AI benefits

Chinese tech company Tencent is a gaming giant and the parent company of WeChat, the ubiquitous social messaging app in China.

Cheng Xin | Getty Images News | Getty Images

Chinese social media and gaming company Tencent on Wednesday reported better-than-expected profit in the third quarter, spurred by growth in games, advertising and cloud services.

Tencent reported profit attributable to shareholders of 53.23 billion yuan ($7.37 billion) in the third quarter, compared with a LSEG estimate of 46.18 billion yuan over the period.

The company’s revenue came in at 167.19 billion yuan, short of the 167.82 billion yuan analyst forecast.

This breaking news story is being updated.

Continue Reading

Technology

China is catching up with the West on tech, Microsoft president says

Published

on

By

China is catching up with the West on tech, Microsoft president says

'In many ways China is close to or is even catching up,' Microsoft's Brad Smith says

The West shouldn’t assume that China is lagging behind the U.S. and Europe on tech developments, Microsoft’s president and vice-chairman warned.

U.S-China tensions in the past few years have centered on the battle between the two nations for tech supremacy, culminating in a slew of export controls on critical technologies. Late last year, China’s Huawei surprised the market with the release of a smartphone whose reviews indicated downloads speeds associated with 5G, sparking speculation of an apparent chip breakthrough that defied U.S. tech sanctions.

Speaking at the Web Summit tech conference in Lisbon, Portugal, on Tuesday, Microsoft’s Brad Smith told CNBC that “in many ways,” China is close to or is even catching up on technology.

“I think one of the dangers, frankly, is that people who don’t go to China too often assume that they’re behind,” he told CNBC’s Karen Tso. “But when you go there, you’re impressed by how much they’re doing.”

He predicted that Chinese and American companies will be competing on technology into the distant future and urged U.S. and European companies to collaborate to grow economies and bring new advancements like artificial intelligence to the rest of the world.

Microsoft CEO Brad Smith participates in a meeting at The Westin Palace Hotel, on 20 May, 2022 in Madrid, Spain.

Cezaro De Luca | Europa Press | Getty Images

Microsoft has operated in China since 1992, according to the company’s web page, including through its largest research and development center outside the U.S. Microsoft CEO Satya Nadella said last year that the firm wasn’t focused on China as a domestic market, but that it provides services to Chinese companies and has a more visible presence locally than do many other U.S. tech giants.

Asked about whether trade and tech transfers — or the movement of data, designs or innovations — with China will get more challenging as Washington transitions between the administrations of U.S. incumbent leader Joe Biden and President-elect Donald Trump, Smith it was too early tor know.

“The truth is, as an American technology company, we can do business in China only when we are offering a service that the Chinese government wants to have there, and the U.S. government wants us to bring there,” he said, adding, “And in some cases they look at, say, a data center to support a Mercedes or a Siemens or a Starbucks or a General Motors — there seems to be a level of comfort. In consumer services, not really.”

He predicted that we’ll live in a world where some technology will move to China, and it won’t be the tech firms that decide.

—CNBC’s Jordan Novet contributed to this article.

Continue Reading

Technology

Startup CEO says humans won’t be needed for translation in 3 years as it launches AI app

Published

on

By

Startup CEO says humans won't be needed for translation in 3 years as it launches AI app

Vasco Pedro, co-founder and CEO of Unbabel, on the first day of the 2023 Web Summit at the Altice Arena in Lisbon.

Miguel Reis | SOPA | Lightrocket | Getty Images

LISBON — Unbabel on Wednesday announced a translation service powered by artificial intelligence, adding another rival to a highly competitive space — with its CEO warning that humans may not be needed for translation at all in three years.

Widn.AI is Unbabel’s new product and is based on the company’s proprietary large language model (LLM) called Tower. An LLM is an AI model that underpins applications like OpenAI’s ChatGPT.

Unbabel’s LLM allows AI translation in 32 languages, Vasco Pedro, the company’s CEO, told CNBC in an interview at the Web Summit in Lisbon.

“When we started in Unbabel 10 years ago, AI was not at the stage that it is now, and so we were very much focused on creating hybrid solutions that would combine AI and human,” Pedro said.

“But I think for the first time, we believe that translation is now fully in the realm of AI capabilities, and that you can do a lot of things without needing humans at all in the case of translation.”

Unbabel’s traditional product was one that combined so-called machine learning, a type of AI, to translate words, but with human editors to check the final product.

Pedro said Widn.AI will not require humans.

“I think humans still have a slight advantage in very hard use cases. But that advantage right now is so razor thin that except for really the … most difficult use cases, we believe AI is getting really there, and it’s hard for me to see right now how three years from now, you will need humans to be translating anything,” Pedro said.

“There’s still going to be humans responsible for making sure that things get translated and are delivered in the right places,” he added.

Widn.AI is the latest product in an increasingly competitive market which includes Google Translate and products from German startup DeepL.

Those companies see translation as a key area in which LLMs can be used effectively and have trained models specifically to tackle various languages.

Pedro acknowledges that the revenue per translated word is going to “drastically reduce.” But he said there will be an increase in the amount of content translated which will sustain the company’s growth.

Unbabel is speaking to investors and is looking to raise between $20 million and $50 million in funding to fuel the growth and development of Widn.AI, according to Pedro.

Continue Reading

Trending