Full Breakdown
Seattle Times and Newsday Sue OpenAI and Microsoft Over AI Training of Their Journalism
9/6/2026, 8:40:02 PM
Core Lawsuit Details
The Seattle Times and Newsday filed a federal copyright and trademark complaint on September 4, 2026 in the U.S. District Court for the Southern District of New York. The suit alleges that OpenAI and Microsoft “methodically scraped” the newspapers’ websites—including pay-walled articles—and incorporated the content into datasets used to train ChatGPT, Microsoft Copilot and Bing’s AI features. Plaintiffs claim the companies reproduce passages verbatim, closely paraphrase full articles, and generate fabricated content falsely attributed to the newspapers, diluting their trademarks. The complaint seeks monetary damages and court orders for the “impoundment and/or destruction” of any training sets or AI models that contain the plaintiffs’ articles.
Background & Context
The filing follows litigation that began with The New York Times’ suit against OpenAI and Microsoft in December 2023. Dozens of publishers—including The Chicago Tribune, The Denver Post, and a coalition of 400 community newspapers—have sued AI firms over similar claims. While some outlets such as The Washington Post and News Corp. have entered licensing agreements with OpenAI, the Seattle Times and Newsday have moved from partnership to courtroom, despite prior collaborations: Microsoft and OpenAI funded a $10 million AI fellowship for the Seattle Times in 2024.
Data & Statistics
- Seattle Times attorneys cite a 47 percent year-over-year drop in search-referral traffic to midsize publishers in December 2025.
- OpenAI is valued at roughly $850 billion and is preparing for an IPO that could target a $1 trillion valuation.
Official Statements & Responses
Seattle Times President and CEO Alan Fisco told employees the lawsuit is “not about impeding AI innovation” but about ensuring innovation does not erode the newspaper’s business model.
Criticism & Opposition
The U.S. Justice Department filed a statement on September 1, 2026 siding with OpenAI and Microsoft, arguing that the “creative possibilities” and potential benefits of AI models “far outweigh any competitive harm” from training on publishers’ content.
Verbatim Quotes
- “While we’re surprised by the lawsuit, we appreciate the importance of local journalism and we’re always happy to sit down and explore solutions to this type of dispute,” — Drew Born, Microsoft spokesperson
- “It is about making sure that innovation does not come at the expense of our business model,” — Alan Fisco, president and CEO
What’s Next
Judge Sidney H. Stein, who is overseeing related copyright cases, is expected to issue a ruling on the parties’ summary-judgment motions in the coming weeks. A decision favoring the newspapers could trigger broader licensing demands or court-ordered destruction of training data; a ruling upholding the defendants’ fair-use defense could limit future copyright claims against AI developers.
