ChatGPT-parent OpenAI is facing a lawsuit in Canada from a coalition of news publishers, including The Canadian Press, Torstar, Globe and Mail, Postmedia, and CBC/Radio-Canada.
What Happened: The lawsuit claims that OpenAI’s ChatGPT system has been scraping content from Canadian media, violating copyright laws, reported the Associated Press.
The publishers argue that OpenAI benefits financially from this content without proper authorization or compensation, undermining their investments in journalism.
They also stress the importance of adhering to legal standards and ensuring fair use of intellectual property. OpenAI, however, asserts that its models are trained on publicly available data and are based on fair use principles.
Why It Matters: This lawsuit is the first of its kind in Canada, although similar legal actions are underway in the U.S. Some news organizations have chosen to partner with OpenAI, securing compensation deals.
This includes OpenAI's deal with Condé Nast in August earlier this year, to incorporate content from brands like Vogue and The New Yorker into its products.
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Despite these challenges, OpenAI continues to expand its influence in the AI sector. In October, the AI startup raised $6.6 billion, reaching a valuation of $157 billion.
Meanwhile, Canada has introduced legislation requiring tech giants like Alphabet Inc.'s GOOG GOOGL Google, and Meta Platforms, Inc. META to pay news publishers.
Earlier this week, Canada's Competition Bureau also initiated legal proceedings against Google, accusing the tech giant of engaging in anti-competitive practices within the online advertising sector.
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