Legal Action by NYT Journalist Against AI Firms

Copyright Dispute Involving AI Model Training

John Carreyrou, a journalist known for his investigative work, has initiated legal proceedings against several prominent AI companies. The defendants include xAI, Anthropic, Google, OpenAI, Meta, and Perplexity. The accusation centers on these corporations allegedly utilizing copyrighted literary works to develop their AI systems without proper authorization.

Carreyrou, who gained fame for uncovering the Theranos scandal, is joined by five other authors in the lawsuit. They jointly contend that these tech giants have breached their intellectual property rights as part of efforts to advance large language models.

The lawsuit emerges amidst a surge in intellectual property disputes targeting AI enterprises over the past year. A diverse array of content-holding entities has initiated legal actions against AI companies, ranging from film production houses like Disney and Warner Bros., to major newspapers such as The New York Times and The Chicago Tribune. Some instances have culminated in licensing agreements, for instance, a partnership between Disney and OpenAI.

Unique Nature of the Case

Unlike typical class action suits, this case is pursued by a small group of individuals. The plaintiffs highlight the decision as deliberate, asserting that companies developing LLMs should not be permitted to settle vast numbers of claims at minimal expense. This litigation marks a first in including xAI as a defendant.

Perplexity has responded by stating their systems do not involve book indexing. Anthropic, meanwhile, has previous experience with similar legal challenges and recently resolved a lawsuit brought by around 500,000 authors, resulting in a $1.5 billion settlement.

Notably, earlier this year, Apple faced lawsuits over comparable accusations. The current complaint draws attention to the Anthropic settlement, criticizing the minimal compensation—merely 2% of the maximum statutory damages under the Copyright Act—available to class members in that case.

Responses and Continuing Developments

Attempts to solicit comments from the implicated AI firms, including xAI, Anthropic, Google, OpenAI, Meta, and Perplexity, have been made by Engadget. Updates will follow once responses are provided.