AIToday
AI Regulation & PolicyAI Business & IndustryThe Verge AIPublished: Sep 19, 2026, 10:00 JST

OpenAI, Microsoft docs warned of 'doom loop' for web

OpenAI, Microsoft docs warned of 'doom loop' for web

3 Key Points

  1. What happened

    Unsealed filings in the New York Times' case show Microsoft and OpenAI internal documents warned their AI scraping started a 'doom loop' and was the 'largest theft of labor in human history.'

  2. Why it matters

    The companies' own words suggest they knew their models threatened the publishers whose content trains them, potentially damaging their own supply chain.

  3. What to watch

    Microsoft says these views are one employee's and not the company's; the test is whether the court accepts that distinction or treats the documents as evidence of intent.

WHO IT HITSNews publishers and content creators whose work has been scraped for AI training are the clearest audience, as the documents describe harm to their referral traffic and compensation.

Not sure about something? Ask the AI

Summaries like this, in your inbox every morning.

Context & Analysis

The unsealed documents come from the New York Times' ongoing copyright case against OpenAI and Microsoft. They reveal that, internally, both companies anticipated the damage their AI products could cause to publishers. Brent Hecht, Microsoft's Director of Applied Science, called the data harvesting the 'largest theft of labor in human history' and said Microsoft's fair use defense made a 'complete mockery' of the concept. A Microsoft internal document warned that their AI content strategy had started a 'doom loop' that would hurt both their models and the entire web.

Microsoft has since tried to distance itself from these statements, with spokesperson Alex Haurek saying they reflect one employee's individual perspective. In a separate filing, Jordan Usdan, GM for Data Strategy and Ops at Microsoft AI, described Hecht's role as adversarial and said he does not speak for Microsoft on these theoretical views. The filings also include statements from Satya Nadella, Sam Altman, and others.

OpenAI's own employees acknowledged that ChatGPT could reproduce copyrighted material verbatim, and that GPT-4 'memorized a ton of data.' OpenAI Policy Director Jack Clark warned about creating systems that substitute for human labor. The documents suggest both companies knew they might irreparably harm the publishing industry but proceeded anyway, and the court will now weigh whether that knowledge matters legally.

FAQ
What did the internal documents say about the web?
A Microsoft document said their AI content strategy had started a 'doom loop' that would hurt both model performance and the entire web. Another said LLMs 'destroy' their own supply chain.
How has Microsoft responded to these quotes?
Microsoft spokesperson Alex Haurek said the comments reflect one employee's individual perspective, are not a legal analysis, and do not represent the company's views. Another filing characterized the employee's role as adversarial.

Get the latest AI Regulation & Policy news every morning

For example, today's edition would include:

  • UnitedHealth sued over nH Predict's 90% error rate in care denialsTop Companies AI · 6h ago
  • AppLovin sued over AI growth claimsTop Companies AI · 6h ago
  • California's Gavin Newsom orders AI 'kill switch' reviewNikkei AI Stocks · 6h ago

AI-summarized, only the topics you pick — one digest a day via Email, Slack, or Discord.

Free · 30 seconds with Google · unsubscribe anytimeWhat is AIToday? →

Ask AI

Ask AI anything about this article. Q&As are published on this page for other readers too.

Related Articles

Next articleAccenture staff to evaluate Anthropic models inside the lab