Microsoft exec called AI scraping ‘the largest theft of labor in human history,' new unredacted filings reveal

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   Microsoft Executive Called AI Scraping "Largest Theft of Labor in Human History"

   Unredacted court filings reveal a Microsoft executive described AI data scraping as "the largest theft of labor in human history." These records suggest that while Microsoft and OpenAI publicly defend their training methods as fair use, executives privately viewed the process as theft. Simultaneously, internal communications indicate staff at both companies recognized that AI tools posed an "existential threat" to the publishing industry. These revelations emerge as the companies fight various legal battles over AI training and copyright, though some software developer claims have recently been rejected by an appeals court.

   Why it matters

   AI companies rely on massive datasets scraped from the internet to train large language models. Publishers argue this practice steals intellectual property and destroys their business models by reducing click-through traffic. The tension centers on whether this usage constitutes fair use or copyright infringement.

   What is confirmed

   • A Microsoft executive called AI scraping "the largest theft of labor in human history" in court filings.
   • Unredacted filings show Microsoft and OpenAI executives privately called AI data scraping theft while publicly defending it as fair use.
   • Staff at OpenAI and Microsoft expressed concern regarding the existential threat AI posed to publishers.
   • An appeals court rejected an expansive new copyright claim against AI training.

   Still unconfirmed

   • Donald Trump supports AI scraping despite the impact on publications.

   What to watch next

   • Further unsealing of court documents from the New York Times lawsuit
   • Rulings on the remaining software developer lawsuits against OpenAI and Microsoft
   Sources used for this update (11)

   1. Financial Times — OpenAI staff knew the ‘existential threat’ AI posed to publishers, New York Times claims
   2. TechCrunch — Microsoft exec called AI scraping ‘the largest theft of labor in human history,' new unredacted filings reveal
   3. Electronic Frontier Foundation — Victory! Appeals Court Rejects Expansive New Copyright Claim
   4. Reuters — OpenAI, Microsoft fend off part of software developer lawsuit over AI training
   5. arstechnica.com — Microsoft exec called AI scraping the “largest theft of labor in human history”
   6. washingtonpost.com — Microsoft exec called AI the ‘largest theft of labor’ in history, court records show
   7. WSJ — Tech Companies’ Staff Knew Their AI Tools Posed ‘Existential Threat’ to Publishers
   8. The New York Times — Inside Microsoft and OpenAI, Worry About Damaging the Publishing Industry
   9. www.yahoo.com — Microsoft’s Own Executive Called AI Training “the Largest Theft of Labor in Human History”
   10. www.yahoo.com — Microsoft exec said AI scraping was ‘the largest theft of labor in human history,’ lawsuit filings reveal
   11. www.tweaktown.com — Internal Microsoft warning brands AI scraping the 'largest theft of labor in human history'
   confidence 90%