NYT brief: Microsoft exec called AI training "astonishing theft"

The filing stems from a consolidated multidistrict litigation that began with the New York Times suit in December 2023 and now includes the Daily News group, Ziff Davis, the Center for Investigative Reporting, and The Intercept. The plaintiffs are seeking billions of dollars in damages, and the brief draws on discovery materials that were not previously public.

The internal records describe a business dynamic the plaintiffs say undermines fair use: Microsoft's own data showed click-through rates on Copilot dropped 87 to 93 percent for the Times, while an internal document warned of a "doom loop" threatening the web that supplies AI training content. OpenAI's Nick Turley acknowledged publishers face an "existential threat," and an OpenAI engineer noted users "won't click" links regardless of prominence.

Previous court rulings have leaned toward fair use, and the US Department of Justice under the Trump administration has sided with the AI labs. OpenAI and Microsoft are expected to respond soon, arguing their use is transformative. The test is likely whether the judge treats the internal messages as evidence of market harm or dismisses them as individual opinions, and whether per-article damages are awarded.