New York Times sues Microsoft, ChatGPT maker OpenAI over 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.
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Jeremy Allaire, co-founder and CEO of Circle, speaks at the 2025 TIME100 Summit in New York on April 23, 2025.
Jemal Countess | TIME | Getty Images
Stablecoin issuer Circle stands to be one of the first significant cryptocurrency companies to go public in the U.S. That’s not the only unusual aspect of its IPO.
In Circle’s updated prospectus on Tuesday, the company said it would sell 9.6 million shares in the offering, while existing shareholders would sell 14.4 million shares. It’s exceedingly rare in a tech IPO for more shares to come from investors than the company.
Facebook was one of the few notable exceptions. In the social network’s massive 2012 IPO, which raised a then-record $16 billion, 57% of the shares were sold by existing stakeholders. Circle is even higher at 60%.
Circle, the company behind the popular USDC stablecoin, didn’t provide a reason for its decision, and a spokesperson declined to comment. The company is profitable, having generated $64.8 million in net income in the latest quarter. It had almost $850 million in cash and equivalents, and stands to raise another $240 million in the IPO, based on the midpoint of its expected range of $24 to $26 a share, according to Tuesday’s filing.
One reason for the hefty amount of insider sales is likely the extended stretch of meager returns for venture capital firms. After the market peaked in 2021, soaring inflation led to increased interest rates, pushing investors out of risk and forcing late-stage tech companies to forego IPOs, often slashing their valuations to raise money in the private market. Wall Street was bullish on an IPO boom when President Donald Trump took office in January, but few debuts have taken place.
Add it all up, and Silicon Valley’s tech investors are badly in need of liquidity.
“Private investors are desperate for exists so they can distribute back to their investors,” said Lise Buyer, founder of IPO consultancy Class V Group, though she said she isn’t certain of the company’s motivations. “It probably reflects a multiyear drought in IPOs and a strong desire by early investors to get some liquidity.”
Circle CEO Jeremy Allaire, who co-founded the company in 2013, is offloading about 8% of his stake, selling 1.58 million shares, according to the prospectus. Sean Neville, a co-founder and former co-CEO, is slated to sell 11%, as is finance chief Jeremy Fox-Green.
Venture firms Accel, Breyer Capital, General Catalyst, IDG Capital, and Oak Investment Partners are all scheduled to sell about 10% of their stock. While insider sales could present a troubling signal to Wall Street, Buyer said the investors’ remaining holdings show they’re still expressing belief in the company.
“The big guys are holding enough so they still have skin in the game, so that shouldn’t alarm investors,” Buyer said.
For most tech IPOs over the years, the percentage of float coming from investors has been significantly below half. In Reddit’s IPO, insiders sold 31% of the shares. The percentage was 36% for online grocery delivery company Instacart in 2023.
Sometimes it’s much less than that. CoreWeave, a former cryptocurrency miner that now rents out Nvidia chips, went public in March, with executives and other shareholders making up 2.4% of the shares sold. Back in December 2020, Airbnb investors accounted for about 3% of IPO shares, and in DoorDash’s IPO that same week, existing investors didn’t sell any stock.
During times when IPOs are hot and stocks are flying after their debut, investors are incentivized to hold and pocket the gains after the lockup period expires. That’s not today’s market, which helps explain why half the shares sold in stock brokerage firm eToro’s IPO earlier this month came from existing investors.
Exit activity for U.S. VCs rose almost 35% last year to $98 billion after hitting the lowest in a decade in 2023, according to the National Venture Capital Association and PitchBook. The peak was over $750 billion in 2021.
“This continuation of the post-2021 liquidity drought highlights persistent issues around exit pathways and investor behavior,” the NVCA wrote in its annual yearbook, which was published in March.
In some cases, companies need insiders to sell stock just so there’s enough float for there to be a market for trading. If Circle wasn’t including investors in its share sale, it would be offering less than 5% of outstanding shares to the public. For eToro that number was 7%.
— CNBC’s Ari Levy contributed to this report.
WATCH: Circle CEO on launching the first stablecoin in Japan
A sign is posted in front of the 23andMe headquarters in Sunnyvale, California, on Feb. 1, 2024.
Justin Sullivan | Getty Images
23andMe said it will file a Form 25 Notification of Delisting with the SEC on or around June 6, which would subsequently remove the stock from listing and registering with the Nasdaq.
The company said the Nasdaq had originally informed the company that a Form 25 would be filed in March, but since the exchange has not yet submitted the filing, 23andMe is doing so voluntarily.
23andMe exploded into the mainstream because of its at-home DNA testing kits that allowed customers to examine their genetic profiles. At its peak, the company was valued at around $6 billion.
But after going public via a merger with a special purpose acquisition company in 2021, the company struggled to generate recurring revenue and stand up viable research or therapeutics businesses.
Regeneron’s deal is still subject to approval by the U.S. Bankruptcy Court for the Eastern District of Missouri. Pending approval, it’s expected to close in the third quarter of this year.
WATCH: The rise and fall of 23andMe
Technology
Tesla shares climb as Musk pledges to be ‘super focused’ on companies ahead of Starship launch
Elon Musk listens as reporters ask U.S. President Donald Trump and South Africa President Cyril Ramaphosa questions during a press availability in the Oval Office at the White House on May 21, 2025 in Washington, DC.
Chip Somodevilla | Getty Images
Tesla shares gained about 5% on Tuesday after CEO Elon Musk over the weekend reiterated his intent to home in on his businesses ahead of the latest SpaceX rocket launch.
The billionaire wrote in a post to his social media platform X that he needs to be “super focused” on X, artificial intelligence company xAI and Tesla as they launch “critical technologies” on the heels of a temporary outage.
“As evidenced by the uptime issues this week, major operational improvements need to be made,” he wrote, adding that he would return to “spending 24/7” at work. “The failover redundancy should have worked, but did not.”
An outage over the weekend briefly shuttered the social media platform formerly known as Twitter for thousands of users, according to DownDetector. Earlier in the week, the platform suffered a data center outage. X has suffered a series of outages since Musk purchased the platform in 2022.
Musk has previously indicated plans to step away from his political work and prioritize his businesses.
During Tesla’s April earnings call he said that he would “significantly” reduce his time running President Donald Trump‘s Department of Government Efficiency.
In the last election cycle, Musk devoted time and billions of dollars to political causes and toward electing Trump in 2024. However, a story over the weekend from the Washington Post, citing sources familiar with the matter, said that Musk has grown disillusioned with politics and wants to return to managing his businesses.
Last week, Musk said in an interview at the Qatar Economic Forum that he planned to spend “a lot less” on campaign donations going forward.
The comments from Musk precede SpaceX’s Starship rocket Tuesday evening. Pressure is on for the company after two Starship rockets exploded in January and March.
Ahead of the launch, Musk announced an all hands livestream on X at 1 p.m.
Tesla is still facing fallout from Musk’s political foray, with protests at showrooms and other brand damage.
In April, Tesla sold 7,261 cars in Europe, down 49% from last year, according to the European Automobile Manufacturers’ Association.
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