September 5, 2026, (Inside AI) — The Seattle Times and Newsday filed a federal lawsuit against OpenAI and Microsoft on Friday, alleging the companies copied their journalism without permission to train AI systems.
The complaint, lodged in federal court, claims the tech firms used copyrighted articles from both newspapers to build large language models. The publishers argue this constitutes direct infringement and undermines their business model.
The lawsuit seeks statutory damages and an injunction to stop further use of their content. It joins a growing wave of legal actions from news organizations challenging how AI companies source training data.
Neither OpenAI nor Microsoft has commented publicly on the filing. The case could set important precedent for how copyright law applies to AI training datasets.
The newspapers allege their journalism was scraped from websites and used without licenses. They say this deprives them of revenue and violates the Copyright Act.
Legal experts note that similar cases, such as The New York Times lawsuit against OpenAI, are still pending. Those outcomes will likely influence this new litigation.
The Seattle Times and Newsday are represented by the same law firm, Susman Godfrey, which has handled other AI copyright cases. The firm argues that fair use does not cover commercial AI training.
Industry observers point out that Microsoft's role as a major investor in OpenAI complicates the defense. Microsoft provides cloud computing infrastructure and has integrated OpenAI models into its products.
The newspapers claim that AI-generated summaries sometimes reproduce their articles nearly verbatim. This, they argue, shows the models memorized copyrighted text.
OpenAI has previously stated that training on publicly available data is fair use. The company has also signed licensing deals with some publishers, including Associated Press and Axel Springer.
However, many regional and local newspapers have not reached such agreements. They argue that AI companies should pay for the value their content adds to models.
The lawsuit highlights the financial strain on local journalism. Newspaper revenues have declined sharply over the past two decades, and AI scraping could accelerate that trend.
According to sources, the plaintiffs will seek discovery into OpenAI's training data. That could reveal whether specific articles were included and how they were processed.
Inside AI could not independently verify the exact training datasets used by OpenAI. The company has not disclosed a full list of sources for its models.
This case also raises questions about the Digital Millennium Copyright Act. The newspapers allege that OpenAI removed copyright management information from their articles.
If proven, that could add another layer of liability beyond direct infringement. It would also signal a broader attack on AI data practices.
The outcome may influence pending legislation on AI and copyright. Several bills in Congress propose requiring transparency in training data.
For now, the case will proceed through early motions and discovery. A trial date, if any, is likely years away.
Both newspapers are owned by Alden Global Capital, a hedge fund known for aggressive cost-cutting. Some critics argue the lawsuit is more about extracting settlement money than protecting journalism.
Still, the legal principles at stake are significant. Courts must decide whether AI training is transformative or simply exploitative.
This lawsuit is one of many filed in 2025 and 2026. Authors, artists, and music labels have also sued AI companies over copyright.
The cumulative pressure could force OpenAI and others to sign more licensing deals. That would reshape the economics of AI development.
For now, the Seattle Times and Newsday join a growing list of publishers seeking compensation. Their case will be watched closely by media and tech industries alike.
