OpenAI Warns US Could Lose AI Leadership to China Over Copyright Training Restrictions

OpenAI Warns US Could Lose AI Leadership to China Over Copyright Training Restrictions

By Marcus Bennett

March 14, 2025 at 08:07 AM

OpenAI argues that restricting AI training on copyrighted works could severely impact America's competitive edge in artificial intelligence development, particularly against China.

The company advocates for AI training to be classified as fair use under copyright law, as their upcoming "US AI Action Plan" approaches its July release. This plan could potentially grant AI companies broader access to training data, which OpenAI deems crucial for maintaining U.S. leadership in AI technology.

Washington Monument behind tech conference crowd

Washington Monument behind tech conference crowd

While the UK moves toward legislation allowing AI companies to train on copyrighted works with an opt-out mechanism for creators, the U.S. faces ongoing legal battles over this issue. A notable ruling has already declared AI training as not fair use in the Thomson Reuters/Westlaw case.

OpenAI defends its training practices, stating their models "learn from works and extract patterns, linguistic structures, and contextual insights" without replicating content for public consumption. They argue this aligns with copyright law's fair use doctrine by creating new, transformative works without diminishing the original works' commercial value.

The company warns that China will likely continue accessing copyrighted data regardless of restrictions, potentially gaining an advantage if U.S. companies face limitations. They advocate for a shift in copyright strategy to promote AI industry's "freedom to learn" while maintaining competitiveness in global AI development.

The White House's decision on the AI Action Plan will significantly impact how AI companies can access and use copyrighted materials for training, potentially reshaping the landscape of AI development in the United States.

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