Seattle Times and Newsday Sue OpenAI and Microsoft, Warn AI Could 'Break' Journalism

The lawsuit, filed September 5 in federal court, is the latest in a growing wave of legal challenges from publishers against the AI companies. The complaint describes generative AI as "a snake eating its own tail" that could "destroy the very organizations" that produce the content it trains on.

"AI products like ChatGPT and CoPilot are touted as producers of content, but in fact they are rapacious consumers, devouring human-authored content and delivering back to the world copies and derivative imitations of that same original content they consumed to achieve their commercial objectives," the lawsuit states.

The two newspapers name Microsoft as a defendant because its Copilot product is built on OpenAI's technology. The suit follows similar actions by The New York Times, Ziff Davis, and nearly 400 local newspapers that have sued the companies collectively.

A Microsoft spokesperson told GeekWire that the company is "surprised by the lawsuit" but is "always happy to sit down and explore solutions to this type of dispute." Notably, Microsoft and OpenAI have previously funded some of The Seattle Times' journalism projects and fellowships, adding a layer of complexity to the legal battle.

The case adds to the mounting pressure on OpenAI and Microsoft over their use of copyrighted material for AI training, a practice that publishers argue undermines the economic viability of journalism.

Why This Matters

The lawsuit signals that even news organizations that have accepted funding from AI companies are willing to take them to court, potentially weakening claims of implied consent.
If successful, the case could force OpenAI and Microsoft to license content from publishers or face significant damages, reshaping how AI companies access training data.
The industry-wide legal offensive raises the stakes for the outcome of the New York Times case, which may set precedent for similar claims.

Background

The legal battle between publishers and AI companies began in earnest in December 2023 when The New York Times sued OpenAI and Microsoft for copyright infringement over unlicensed use of its articles to train AI models. Since then, numerous media outlets — including digital publishers like Ziff Davis and newspapers representing hundreds of local titles — have filed similar suits. The core allegation is that AI models memorize and reproduce substantial portions of copyrighted works, competing with the original sources.

Key Perspectives

Publishers: Argue that AI companies are free-riding on expensive journalism, that reproduction of content in AI responses hurts traffic and revenue, and that licensing is necessary for a sustainable news ecosystem. OpenAI and Microsoft: Have not yet filed a response in this case. Previous defenses have included fair use arguments and claims that AI training is transformative. Microsoft expressed willingness to negotiate. Critics: Some legal experts question whether the reproduction of short passages in AI outputs constitutes infringement, and note that fair use may protect training on publicly available content.

What to Watch

Whether OpenAI and Microsoft move to dismiss the lawsuit or seek early settlement.
Any court rulings on the fair use defense in the related New York Times case, which could guide this litigation.
Whether other news organizations — especially those with existing AI partnerships — join or distinguish themselves from this suit.

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