Unsealed filing quotes Microsoft, OpenAI executives calling AI training 'theft' and 'substitutive' for news
A 92-page plaintiffs' brief unsealed Thursday in the consolidated OpenAI copyright litigation before Judge Sidney H. Stein quotes internal Microsoft and OpenAI communications acknowledging that their AI products compete with and substitute for the news outlets whose content trained them. Microsoft Director of Applied Science Brent Hecht wrote that the public would see large models "hoovering up"…
Key points
- Unsealed brief quotes Microsoft's Brent Hecht calling AI training "largest theft of labor in human history" and OpenAI's Nick Turley saying products are "largely substitutive, period"
- Microsoft data cited showing click-through rates down 87-93% for NYT, 83-91% for Daily News, 51-94% for Ziff Davis comparing Copilot to Bing search
- Brief alleges OpenAI datasets hold 91,692+ copies of plaintiffs' works; Greg Brockman replied "ah nice" to paywall bypass hack
The three outlets differ in emphasis and additional context. The Next Web provides the most detailed account of the brief's contents, including the "Horse Trading" section describing data sharing between Microsoft and OpenAI via Taxi and Mango initiatives, and the Department of Justice's September 1 statement of interest arguing training is fair use. CNBC focuses on options market activity in New York Times stock, noting a purchase of roughly 4,400 October 72.5/77.5 call spreads and trader expectations of a summary judgment ruling or settlement within weeks. IJR includes commentary from tech policy expert Evan Swarztrauber, who said the internal statements "completely contradict" the companies' fair use defense, and quotes Microsoft spokesman Alex Haurek calling Hecht's writings "one employee's individual perspective, are not a legal analysis."
All three articles agree on the core allegations from the unsealed brief: internal admissions of substitution, theft language, declining click-through rates, paywall circumvention, and the tension with the DOJ's fair use position. Microsoft and OpenAI have not conceded the legal points, and the defendants' expert distinguishes grounded synthesis from search engine linking.
The story so far
6 episodes →- Unsealed filing quotes Microsoft, OpenAI executives calling AI training 'theft' and 'substitutive' for newsthis story
A Microsoft scientist called AI training the largest theft of labor
thenextweb.com · 21 September 2026
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This text was published by thenextweb.com and written by Ana Maria Constantin. It is reproduced here with attribution so you can read it in full; the rights remain with the publisher. Read it at the source ↗
Coverage and discussion
3sources- Historic lawsuit sparks flurry of option activity in NY Times stockPress · CNBC Technology ·
- Microsoft Director Warned The Public Would See AI Training As ‘Astonishing Theft,’ Unsealed Filing ShowsPress · ijr.com ·
The headline, key points and digest above were generated by Digest AI's editorial model from the linked sources. Automated summaries can contain errors: the sources are the record. Spotted a mistake? Tell us. Published by Martin K., who runs Digest AI and handles corrections.
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