The New York Times has filed an amended complaint in the U.S. District Court for the Southern District of New York, shifting the focus of its allegations from model developers to Microsoft. The publication claims that the company created a specialized supercomputing system specifically designed to train neural networks on copyrighted material.

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What Happened

The New York Times filed an amended complaint against Microsoft and OpenAI. The key allegation is now directed at Microsoft, which, according to the plaintiff, deployed a supercomputing system featuring more than 285,000 CPU cores and 10,000 GPUs. The publication claims this infrastructure was specifically engineered for the processes of training models on copyrighted materials.

Context

The NYT's change in strategy is driven by a recent U.S. Supreme Court decision that raised the legal threshold for liability regarding contributory infringement. The legal battle is now shifting from the question of exactly which data was used for training to the question of who provided the technical capability for such infringement by creating specialized hardware.

Why It Matters for the Industry

For the AI industry, this represents a significant shift in legal risks: liability could move from model developers (OpenAI) to infrastructure providers (Microsoft, AWS, Google Cloud). If creating specialized hardware for training on copyrighted content is deemed intentional assistance, it would set a dangerous precedent for all cloud providers offering computing power for AI.

Why It Matters for Users

For users and AI startups, this creates uncertainty regarding the availability and cost of cloud computing. In the long term, this could lead to more complex Terms of Service from cloud giants, increased compliance costs, and potentially higher prices for renting specialized GPU clusters due to the need for providers to insure against legal risks.

What Is Not Yet Known / Limitations

There is a divergence in the assessment of consequences: experts disagree on whether this will remain a purely legal precedent or lead to a direct and large-scale change in the cost of cloud infrastructure.

Sources

Author

Look at AI, Editorial Staff