The industry titans of artificial intelligence, OpenAI and Microsoft, are facing a new legal challenge about ChatGPT’s training data. 

In Manhattan on January 5, 2024, authors Nicholas Basbanes and Nicholas Gauge went to a federal court to say that their works were being used to teach the popular language model without their approval. 

This claim comes right after the New York Times sued the same companies a week ago for the same reason.

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Copyright Issues with Echo in the Courtroom:

The lawsuit says that OpenAI and Microsoft “misappropriated and exploited” Basbanes and Gage’s works to make a business plan that makes money, which is the same thing as “stealing” intellectual property to get rich. They say that ChatGPT’s use of their work doesn’t change anything and competes with their unique works. Some examples were when ChatGPT generated responses that were almost word-for-word copies of passages from the writers’ books.

It brings up important questions about fair use and how to handle data decently when developing AI. The writers want big money in damages and an injunction to stop other people from using their works without their permission.

Mounting Pressure on AI Titans:

These cases add to the legal pressure on OpenAI and Microsoft, which are already scrutinised for making AI models that need much data. The results of these cases could set a prominent example of how AI is developed in the future. For example, it could change how companies train and use big language models while still respecting the artists’ rights.

This changing legal situation shows the importance of clear rules and ethical thoughts about using data in AI development. As AI overgrows, it will be essential to find a balance between new ideas and protecting intellectual property. It will help make the technology’s future responsible and long-lasting.

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What you should know

Although OpenAI owns the popular chatbot ChatGPT, Microsoft is part owner through its investments. Microsoft has committed $13 billion to OpenAI and has incorporated the company’s technology into its Bing search engine.

Investors now value OpenAI at more than $80 billion, and the company is reported to be in early discussions to raise a fresh round of funding at a valuation at or above $100 billion.