A new copyright lawsuit has been filed against OpenAI and Microsoft, accusing both companies of unauthorized use of copyrighted materials to train ChatGPT. Julian Sancton, author of "Madhouse at the End of the Earth," filed the class-action lawsuit in New York federal court.

Unlike previous lawsuits from Sarah Silverman and the Authors Guild, this case uniquely targets both OpenAI and Microsoft. The lawsuit alleges that Microsoft built and operated the computer systems enabling the unauthorized copying, while OpenAI designed and fine-tuned the GPT models.

Key allegations in the lawsuit include:

• OpenAI and Microsoft built a multi-billion dollar business by using copyrighted works without permission
• OpenAI transformed from a non-profit into a complex network of for-profit entities
• ChatGPT was trained on "quality" content, including copyrighted materials
• The companies failed to compensate authors for using their work

The lawsuit cites ChatGPT's own admission of using Sancton's book in its training data, though the complaint notes that the AI has since been modified to avoid revealing such information.

Sancton seeks several remedies:

• Statutory and compensatory damages
• Disgorgement of profits
• Permanent injunction against further infringement

The case number is 1:23-cv-10211.

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