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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