Observed Signal · Oct 31, 2026 · Policy Update · Source: OpenAI Blog · Impact: 3/5 · Sentiment: Neutral
OpenAI Defends AI Training as Fair Use
OpenAI has published excerpts from amicus curiae briefs filed by various groups and individuals in support of its position that training AI models on copyrighted works constitutes fair use. The briefs, submitted in the copyright lawsuit brought by The New York Times, argue that AI training is transformative and does not harm the market for original works. Supporters include non-profit organizations like Public Knowledge, trade associations like the Consumer Technology Association, and prominent individuals such as Pulitzer Prize-winning journalist Ron Suskind and author Kevin Kelly. The submissions emphasize the broader societal benefits of AI, including accessibility, medical research, and innovation, and argue that restricting fair use would stifle progress. The U.S. government's brief also cautions against narrowing fair use doctrine, highlighting potential harm to American prosperity and scientific advancement.
This article discusses legal arguments in a major copyright case involving AI, which could set precedent for AI training and impact the entire ecosystem.
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Key Takeaways & Evidence Grounding
- OpenAI published excerpts from amicus briefs supporting fair use in AI training.
- The briefs were filed in response to The New York Times' copyright lawsuit against OpenAI.
- Supporters include the American Council of the Blind, Authors Alliance, and Public Knowledge.
- The U.S. government filed a brief arguing against narrowing fair use for AI training.
- The briefs argue AI training is transformative and does not harm original works' market.
Connected Companies & Entities
3 Entities mapped“OpenAI published excerpts from amicus briefs supporting fair use in AI training.”
“The New York Times lawsuit asks to ignore fair use principles; OpenAI is defending against this lawsuit.”
“The New York Times lawsuit asks to ignore fair use principles; OpenAI is defending against this lawsuit.”
Ontology Mapping & Concepts
Related Market Signals & Shifts
Recent verified developments and strategic activity across this market segment.
US Government Sides With OpenAI in Copyright Training Lawsuit
The Trump administration has filed a 20-page legal brief in the copyright lawsuit brought by The New York Times against OpenAI, arguing that AI companies should be allowed to train large language models on copyrighted material without explicit permission. The brief asserts that the United States has a strong interest in maintaining global leadership in artificial intelligence and warns against constraining LLM development under what it calls a misunderstanding of fair use doctrine. It is not a ruling; the case is pending in the U.S. District Court for the Southern District of New York. The intervention could influence the ongoing fair-use debate, which centers on whether training AI on copyrighted works is transformative. The article also notes a related case in which Anthropic was ordered to pay a $1.5 billion settlement to writers, but the penalty was tied to its use of illegal shadow libraries, not to the act of training models on copyrighted texts.
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.
NYT-Opening Documents Reveal AI Scraping, Fair-Use Impact on Publishers
Newly unsealed documents in The New York Times' lawsuit against OpenAI and Microsoft reveal internal admissions that AI products are 'largely substitutive' and pose an 'existential threat' to publishers. Legal experts say this eviscerates the fair-use defense, especially given evidence of paywall circumvention, which may violate the DMCA. The filings could catalyze more publisher lawsuits and force AI companies into paid licensing markets. Executives from OpenAI, Microsoft, and other AI firms are shown acknowledging the commercial value of news content while using it without permission. The case, presided over by Judge Sidney Stein, may set precedent for AI training on copyrighted works, reshaping the terms of trade between AI and publishing.
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