Recently unsealed court documents in the New York Times’ case against OpenAI and Microsoft are beautiful damning. The companies’ own records warned that it was starting a “doom loop” that would damage the web, characterized its abrasion of data to train its models as the “largest theft of labor in individual history,” and that it made a “complete mock of the idea of fair use.”
Many of the most eye-catching quotes from the document arrive from Microsoft’s Director of Applied Science, Brent Hecht. Though, the business has tried to extend itself from Hecht’s assertions. Microsoft spokesman Alex Haurek told The Verge that “These comments indicate one employee’s idiosyncratic perspective, are not a lawful analysis, and do not portray the company’s views.”
In a distinct court filing, Jordan Usdan, GM for Data Strategy and Ops at Microsoft AI, characterized Hecht’s function as adversarial. He stated that Hecht “holds divergent, academic, and forward-looking views concerning how data ecosystems for AI should run and is employed at Microsoft to bring asymmetrical, futuristic, and scholarly points of perspective … nor is he person who speaks for Microsoft specifically as to his theoretical views on AI’s possible consequence on satisfied creators.”
But whether or not Microsoft wants to own these comments, it’s apparent that this came true. Google Zero is real! AI is dining the web!
There are plentifulness additional untamed statements in NYT’s filing from a assortment of figures, including Satya Nadella, Sam Altman, and another OpenAI employees. Here are several highlights from the 92 leaf document.
“An amazing theft”
The introduction quotes Hecht and OpenAI’s Head of ChatGPT (presumably Nick Turley) in a way that seems to display the companies knew they posed an “existential threat” to publishers akin the New York Times. Hecht calls ChatGPT and Copilot’s harvesting of data the “largest theft of labor in individual history” and says that Microsoft’s defence makes a “complete mock of the idea of ‘fair use.’”
It’s a “doom loop”
Satya Nadella admits that chatbots have basically replaced hunt and removed the need to go direct to the origin for info. But perchance additional damning is an inner Microsoft document that says, “Our AI satisfied scheme has started a ‘doom loop’ that volition hurt the achievement of our models and the complete web at the identical time: It is extremely different that an end-product threatens the financial foundations of its essential suppliers, but that is the circumstance we have created for our LLM endeavor alongside regard to its ‘content provision chain.’”
That’s not equal a genuine number
Don’t be fooled by OpenAI or Microsoft’s claims of altruistic intent. OpenAI cofounder Greg Brockman is additional curious in the “gazillions” of dollars it he could possibly create through business AI.
Paywall shmaywall
Despite Nadella afterward being quoted as saying, “anything that is paywalled have to be licensed,” An OpenAI delegate admitted that he was “unaware” of any attempt to detect or eliminate paywalled satisfied from training data.
“Insanely fine at regurgitation”
Internally, it seems that OpenAI was fine conscious of ChatGPT’s inclination to merely reproduce copyrighted matter “verbatim.” Even although it acknowledged that the “prevention of memorization” was crucial to “minimize copyright violations,” workforce admitted that GPT-4 “memorized a ton of data and hence volition be insanely fine at regurgitation.”
The filing afterward goes on to citation multiple examples of ChatGPT outputting lengthy strings of copy direct from articles in the Times, Mercury News, The Denver Post, LifeHacker, and Eurogamer in reply to queries.
“‘Hoovering up’ all their work”
Microsoft knew how its wholesale abrasion of the net would be perceived and admitted that “almost no one intended for they [sic] satisfied they created to be used in this fashion, nor are they compensated for its use.”
A “substitute for the labor of people”
OpenAI Policy Director Jack Clark saw the penning on the wall, saying that it was “creating systems that substitute for the labor of the group that define the ‘culture’ of society.” Internal documents described ChatGPT as “the contemporary newsstand.” OpenAI’s Nick Turley is afterward quoted as saying that formerly you get an answer from its chatbot, there is “no fine logic to click” on a nexus to the source.
Destroying their own provision chain
Microsoft is quoted as admitting that “LLMs are a merchandise that destroys its own provision chain” since it’s a substitute for its own training data in many cases.
OpenAI knows its slaying referral traffic
OpenAI’s own media and financial experts attributed the autumn in referral traffic for sites akin the Times immediately to AI summaries akin Google’s AI Overviews. They’ve speculated that hunt referrals may be downward as much as 60 percent.
Microsoft spokesman Haurek cautioned that “Satya’s evidence and Microsoft’s stance in this case are absolutely consistent. He said to broad principles and changes underway in how group discover and consume information. Those observations should not be confused alongside conclusions concerning copyright questions before the Court, which Microsoft addresses in its filings.”
But it seems beautiful apparent according to this newly unsealed document that the two Microsoft and OpenAI knew they were going to irreparably damage the publishing industry, the “millions of people” it employs, and, by extension, damage their own product, but carried onward anyhow in chase of “gazillions” of dollars — destiny iteration be damned.
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![This case is about, as Microsoft’s Director of Applied Science [Brent Hecht] put it, “an amazing theft of unprecedented proportions”; SF1437, perchance the “largest theft of labor in individual history.”SF1652. Defendants often copied millions of Plaintiffs’ copyrighted articles in their entiretywithout approval to create substitutive business AI products. OpenAI’s Head of ChatGPTwrote that “[p]ublishers” visage an “existential threat” from those products, SF1466, which, he said,“are mostly substitutive, period” and “will get additional and additional substitutive as they get better.”SF1473-74. Such admissions eviscerate Defendants’ “fair use” defence since substitution is“copyright’s bête noire.” Andy Warhol Foundation for the Visual Arts, Inc. v. Goldsmith, 598 U.S.508, 528 (2023). For Defendants to prevail on this defence “would,” the identical Microsoft executiverecognized, arguably “make a complete mock of the idea of ‘fair use.’” SF1450.](https://platform.theverge.com/wp-content/uploads/sites/2/2026/09/Screenshot-2026-09-18-at-12.47.37-PM.png?quality=90&strip=all&crop=0%2C0%2C100%2C100&w=2400)



![That identical year, OpenAI recognized that its API “might outputexisting satisfied verbatim.” SF945. By 2021, OpenAI considered the safety of memorizationimportant “for fair use [compliance] and minimizing copyright violations in example output.” SF946.In June 2022, OpenAI workforce acknowledged that GPT-4 would have “memorized a ton of dataand hence volition be insanely fine at regurgitation.”](https://platform.theverge.com/wp-content/uploads/sites/2/2026/09/regurgitation.png?quality=90&strip=all&crop=0%2C0%2C100%2C100&w=2400)

![“[O]ur activity on AI and Creativity isgoing to increasingly guide to us creating systems that substitute for the labor of the group thatdefine the ‘culture’ of society[.]” SF1677. OpenAI inner documents characterize ChatGPT as“[t]he contemporary newsstand,” SF1500, and brag that ChatGPT provides “fast, timely answers…whichyou would have earlier needed to go to a hunt motor for” including “up-to-date sportsscores, news, inventory quotes, and more.”](https://platform.theverge.com/wp-content/uploads/sites/2/2026/09/substitute.png?quality=90&strip=all&crop=0%2C0%2C100%2C100&w=2400)
![Defendants acknowledge the predictable consequences of this design. Per Microsoft, the“[p]romise of LLMs is mostly in the identical data activity domains from which they get theircontent... They naturally vie alongside their satisfied provision chain.” SF1798. They substitute forthe “labor of the people” who produced the first satisfied on which they were trained, including,among another things, newspapers and books. SF1452, 1677. There is a “real risk” that GenAI could“significantly disrupt[] the occupation of the extremely group who generated the data on which thefoundation example was trained.” SF1467. “LLMs are a merchandise that destroys its provision chain.”](https://platform.theverge.com/wp-content/uploads/sites/2/2026/09/destroys.png?quality=90&strip=all&crop=0%2C0%2C100%2C100&w=2400)
