Canada’s news outlets are suing OpenAI for billions of dollars over unauthorized use of content

Major Canadian news organizations have reportedly filed a lawsuit against OpenAI in a landmark legal battle, claiming the tech company unfairly profited from their content by using it to train its ChatGPT software.

The lawsuit, which could be worth billions of dollars, was filed Friday in Ontario’s Superior Court of Justice.

The plaintiffs, which include prominent media outlets such as the Globe and Mail, Canadian Press, CBC, Toronto Star, Metroland Media and Postmedia, accuse OpenAI of “strip-mining journalism” and accuse OpenAI of engaging in unlawful conduct by using articles without their permission to enrich.

They claim the company mined its websites for valuable news content and used it to improve its AI models, including the hugely popular ChatGPT.

The lawsuit seeks significant financial compensation, including up to $20,000 Canadian for each item OpenAI allegedly used, suggesting a successful outcome could result in billions of dollars in damages.

The news organizations are also seeking an injunction to prevent OpenAI from using their content in the future.

The lawsuit filed in court argues that OpenAI intentionally “scrapes” content from plaintiffs’ websites – an act of unauthorized copying – without obtaining consent or authorization.

This practice is not only unlawful, but also a direct attack on their business model, which is based on generating revenue from the original journalism they produce, the plaintiffs claim.

Although the case is still in its early stages, it follows a broader trend of media organizations pushing back against tech giants like OpenAI and Meta.

In the United States, high-profile lawsuits from news outlets such as the New York Times also targeted OpenAI for its use of copyrighted material without compensation.

OpenAI is valued at over $150 billion and has signed licensing deals with several media companies, including Associated Press, NewsCorp and Condé Nast.

However, the company has not yet commented on the Canadian lawsuit.