Unsealed filings show Microsoft, OpenAI insiders privately called AI training data 'theft'
Newly unsealed court documents in the New York Times' copyright lawsuit against OpenAI and Microsoft reveal internal admissions from both companies' executives. Microsoft's director of applied science Brent Hecht reportedly described AI training as the 'largest theft of labor in human history,' while OpenAI cofounder Greg Brockman acknowledged that generative AI products pose an 'existential threat' to publishers because they are increasingly substitutive of original content.
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These internal statements, now part of the public record, directly undercut the fair-use defense that OpenAI and Microsoft have relied on throughout the litigation, since fair use typically requires that new works not simply replace the originals they draw from. If courts weigh these admissions heavily, it could set a precedent affecting how AI companies license or compensate publishers for training data industry-wide.
- Court filings reveal Microsoft and OpenAI executives privately conceded AI training relied on mass appropriation of copyrighted material.
- The admissions threaten to undermine the companies' fair-use legal defense in the NYT copyright case.
- The case, ongoing since 2023, could set major precedent for how AI firms must handle copyrighted training data.
Source: futurism.com — Joe Wilkins, 2026-09-17
Published there as: “Microsoft Director Privately Admitted AI Was the “Largest Theft of Labor in Human History,” Unsealed Court Documents Show”
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