AI / Regulation Market: Microsoft Managers Call AI Training 'Ridiculous Theft'

In a copyright lawsuit filed by The New York Times against Microsoft and OpenAI, internal documents reveal that senior Microsoft executives privately view AI training on copyrighted content as a massive theft of labor, despite public justifications. Brent Hecht, head of applied sciences at Microsoft, called it "astonishing theft of unprecedented scale," while OpenAI's ChatGPT chief Nick Turley admitted the technology poses an "existential threat" to news publishers. The documents also suggest that internal opinions about the "fair use" defense are skeptical, with concerns that prevailing on it would make the term meaningless. Microsoft executives, including CEO Satya Nadella, acknowledged under oath that chatbots can replace visits to original sources, leading to a potential "vicious circle" harming both models and the internet. The case, still ongoing, is a key precedent for whether AI training qualifies as fair use.