New York Times Sues OpenAI and Microsoft - AI Copyright Infringement Amid 54% Stock Surge

Microsoft Corporation +0.23% Post

Microsoft Corporation

MSFT

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415.00

+0.23%

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  • The New York Times has filed a lawsuit against OpenAI and Microsoft, alleging copyright infringement related to the use of its content by ChatGPT.
  • The New York Times argues that ChatGPT's ability to generate similar or exact content has led to direct competition, affecting its subscription and advertising revenues.
  • While Microsoft's stock has experienced fluctuations in December, it has grown by 54% this year, with the potential to reach $400.

The New York Times has initiated a lawsuit against OpenAI and Microsoft Corp (NASDAQ:MSFT), accusing them of copyright infringement. The dispute centers around ChatGPT by OpenAI.

According to the lawsuit, ChatGPT used millions of New York Times articles, typically accessible only with a paid subscription, without permission for its training.

The newspaper argues that this has created direct competition, as ChatGPT can produce content that closely resembles or includes exact excerpts from their articles.

As a result, the Times claims to have suffered significant losses in subscription revenue and advertising clicks, impacting their financial performance.

This lawsuit raises important questions about the use of publicly available data in training AI models, the definition of fair use in machine learning, and the potential impact of AI on content creators. Its implications go beyond the immediate parties involved.

Microsoft's stock performance does not appear to be directly impacted by the news but it has been subject to fluctuations in December. After hitting a record high on November 29th at $384, the stock experienced a 5% decline and stabilized around $366 by December 4th.

This level of support aligns with the high from July 2023. Despite these ups and downs, Microsoft's stock has shown impressive growth of 54% this year. However, December has seen a slight decline of 1.31%, in contrast to the noteworthy 11% increase in November.

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The stock's potential for a comeback and reaching a new high is an important aspect to consider. Should this happen, the next significant obstacle to overcome is estimated to be around $400. If Microsoft manages to surpass this level, it will likely enter into a long-term upward trend.

After the closing bell on Wednesday, December 27, the stock closed at $374.07, trading down by 0.22%.

This article is from an external contributor. It does not represent Benzinga's reporting and has not been edited for content or accuracy.

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