By BestMediaInfo Bureau

The New York Times is striking back against the threat that artificial intelligence poses to the news industry, filing a federal lawsuit Wednesday against OpenAI and Microsoft seeking to end the practice of using its stories to train chatbots.

The Times says the companies are threatening its livelihood by effectively stealing billions of dollars worth of work by its journalists, in some cases spitting out Times' material verbatim to people who seek answers from generative artificial intelligence like OpenAI's ChatGPT.

The newspaper's lawsuit was filed in federal court in Manhattan and follows what appears to be a breakdown in talks between the newspaper and the two companies, which began in April.

The media has already been pummelled by a migration of readers to online platforms. While many publications most notably the Times have successfully carved out a digital space, the rapid development of AI threatens to significantly upend the publishing industry.

Web traffic is an important component of the paper's advertising revenue and helps drive subscriptions to its online site. But the outputs from AI chatbots divert that traffic away from the paper and other copyright holders, the Times says, making it less likely that users will visit the original source for the information.

These bots compete with the content they are trained on," said Ian B. Crosby, partner and lead counsel at Susman Godfrey, which is representing The Times.

An OpenAI spokesperson said in a prepared statement that the company respects the rights of content creators and is "committed" to working with them to help them benefit from the technology and new revenue models.

"Our ongoing conversations with the New York Times have been productive and moving forward constructively, so we are surprised and disappointed with this development," the spokesperson said. "We're hopeful that we will find a mutually beneficial way to work together, as we are doing with many other publishers."

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