GoKawiilUnsealed filings in NYT-OpenAI copyright suit boost odds of settlement or trial loss for OpenAI
Newly unsealed court documents in The New York Times' copyright lawsuit against OpenAI and Microsoft reveal internal admissions that undercut the companies' fair-use defense. Executives reportedly called AI chatbots an 'existential threat' to journalism and described the training process as one of the largest uses of copyrighted material without compensation, while data showed sharp declines in Times click-through traffic. The revelations have triggered a surge in options trading tied to the case's potential outcome.
GoKawiil's interpretation of the reporting above, not reported fact.
The case could set a defining precedent for how AI companies use copyrighted content to train large language models, with billions of dollars and the future of digital journalism's business model at stake. A Times victory could force costly licensing deals across the industry, while a Justice Department intervention citing national security shows how geopolitics is now entangled with U.S. copyright law and AI competitiveness.
- Unsealed statements suggest OpenAI and Microsoft executives privately acknowledged AI's threat to journalism's economics.
- The Times' click-through rates reportedly fell sharply as AI tools began summarizing news content directly.
- The DOJ's fair-use argument, citing national security, complicates the case and could shape future AI copyright rulings.
Source: cnbc.com — Michael Khouw, 2026-09-21
Published there as: “Historic lawsuit sparks flurry of option activity in this stock”
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