Microsoft exec called AI the ‘largest theft of labor’ in history, court records show
Court documents unsealed October 16 reveal Microsoft directed employees to classify a web scraping project for OpenAI known as Project Mango. This follows the disclosure of an internal memo describing AI scraping as the largest theft of labor in human history. The revelations contradict Microsoft's public legal defense that training AI on copyrighted data is fair use. These disclosures emerge as tech companies face hundreds of copyright lawsuits from authors, musicians, and news organizations over the origin of their training data.
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- ✓ Court records from the New York Times versus OpenAI lawsuit include an internal Microsoft memo calling AI scraping the largest theft of labor in human history.
- ✓ Microsoft instructed employees to keep its web scraping project for OpenAI, Project Mango, classified.
- ✓ More than 250 AI court cases are currently being tracked.
What changed
Unsealed documents from October 16 identify Project Mango as the classified web scraping operation Microsoft conducted for OpenAI.
Live updates
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Microsoft ordered secrecy for OpenAI scraping project Project Mango
Court documents unsealed October 16 reveal Microsoft directed employees to classify a web scraping project for OpenAI known as Project Mango. This follows the disclosure of an internal memo describing AI scraping as the largest theft of labor in human history. The revelations contradict Microsoft's public legal defense that training AI on copyrighted data is fair use. These disclosures emerge as tech companies face hundreds of copyright lawsuits from authors, musicians, and news organizations over the origin of their training data.
Why it matters
The legal outcome depends on whether judges view AI training as fair use or intellectual property theft. This specific case involves the New York Times and OpenAI. It is part of a broader legal trend involving over 250 AI-related court cases.
What is confirmed
- Court records from the New York Times versus OpenAI lawsuit include an internal Microsoft memo calling AI scraping the largest theft of labor in human history.
- Microsoft instructed employees to keep its web scraping project for OpenAI, Project Mango, classified.
- More than 250 AI court cases are currently being tracked.
Still unconfirmed
- Microsoft and OpenAI employees warned about intellectual property theft used to train AI.
What to watch next
- Federal judge ruling on the Department of Justice brief supporting fair use arguments.
- Court rulings regarding output infringement and discovery in the New York Times case.
confidence 90%Sources used for this update (5)
- ailawsuittracker.com — AI Court Cases A–Z: Docket Numbers, Courts & Judges
- ailawsuittracker.com — Major AI Court Rulings (2026): Fair Use, Output & More
- www.forgenex.com — Microsoft knew about data theft for AI, according to lawsuit
- www.gate.com — Microsoft Told Employees to Classify OpenAI Data Scraping ...
- www.theepochtimes.com — Is AI Built on Theft? Almost 100 Lawsuits Say So.
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Microsoft Memo Sparks Copyright Debate in OpenAI Lawsuit
Unsealed court records in the New York Times versus OpenAI lawsuit reveal an internal Microsoft memo labeling artificial intelligence scraping as the largest theft of labor in human history. This internal description challenges Microsoft's public legal stance that training artificial intelligence on copyrighted material falls under fair use. The disclosure arrives as media organizations urge a federal judge to dismiss a Department of Justice brief supporting fair use arguments for OpenAI. Over 140 copyright lawsuits target major technology companies regarding training data practices.
Why it matters
The litigation centers on whether unauthorized article copying to train conversational models constitutes copyright infringement or fair use. Major publishers and technology platforms remain locked in legal battles over content utilization and pricing leverage. Judicial decisions in these summary judgment proceedings will shape data acquisition rules for the artificial intelligence industry.
What is confirmed
- Microsoft Corporation is headquartered in Redmond, Washington, and ranks as the largest software company by revenue.
- The New York Times lawsuit against OpenAI and Microsoft involves allegations of copying articles to train ChatGPT.
- AI copyright litigation tracks more than 140 active cases against technology companies.
Still unconfirmed
- The unsealed Microsoft memo represents a formal corporate policy shift regarding artificial intelligence training data.
What to watch next
- Federal court rulings on summary judgment motions in the New York Times versus OpenAI lawsuit
- Judicial response to publisher objections against the Department of Justice brief
confidence 90%Sources used for this update (11)
- account.microsoft.com — Microsoft account | Sign In or Create Your Account Today ...
- en.wikipedia.org — Microsoft - Wikipedia
- apps.microsoft.com — Microsoft Store - Download apps, games & more for your Windows PC
- support.microsoft.com — Sign in to Microsoft 365
- m365.cloud.microsoft — Microsoft 365 - Sign into Copilot
- support.microsoft.com — Contact Microsoft customer support | Microsoft Support
- www.adn.com — Business/Economy - Anchorage Daily News
- axis-intelligence.com — AI Copyright Lawsuits Tracker 2026: Live Case Status
- openclassactions.com — New York Times OpenAI Lawsuit: Where the Case Stands
- mediacopilot.ai — Publishers finally have AI buyers but no say in the price
- ailawsuittracker.com — AI Copyright Lawsuits (2026): All 146 Cases & Status
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Unsealed court filings link Microsoft memo to AI labor theft claim
Unsealed filings in the New York Times v. OpenAI lawsuit reveal a Microsoft memo describing AI scraping as the largest theft of labor in human history. This internal admission contradicts Microsoft's public legal position that training AI on copyrighted content constitutes fair use. The revelation comes as news publishers pressure a federal judge to ignore a Department of Justice brief that supports OpenAI's fair use arguments.
Why it matters
AI developers face multiple lawsuits from publishers over the unauthorized use of copyrighted data. These cases will determine if scraping online content for model training is legal or requires payment to creators.
What is confirmed
- Unsealed filings in the New York Times v. OpenAI lawsuit quote a Microsoft memo calling AI scraping the largest theft of labor in human history.
- News publishers asked a federal judge to disregard a government brief supporting OpenAI's fair use argument.
What to watch next
- The federal judge's ruling on the DOJ brief in the AI copyright suit
- Further unsealed communications between Microsoft and OpenAI regarding training data
confidence 90%Sources used for this update (6)
- arstechnica.com — Tag: openai - Ars Technica
- www.youtube.com — Microsoft AI Exec: “Largest Theft of Labor in Human History ...
- news.bloomberglaw.com — News Outlets Ask Court to Ignore DOJ View in AI Copyright Suit
- dev.to — OpenAI lawsuit: Microsoft's 'theft of labor' memo in the NYT ...
- dev.to — OpenAI hack by Claude, ZCode's git upload: week 38 in tech ...
- www.ghacks.net — AI News: Artificial Intelligence Updates, Tools, Trends - gHacks
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Microsoft exec calls AI training "largest theft of labor" in history
A Microsoft executive, Brent Hecht, described AI training on scraped online content as "the largest theft of labor in human history" in a court document. This characterization highlights the company's internal views on AI training data amid legal battles over copyright protections. The comments contradict Microsoft's public stance on the issue, which claims fair use.
Why it matters
The AI industry's use of online content for training has sparked controversy and legal challenges. Companies like Microsoft and OpenAI are facing scrutiny over their data gathering practices. The internal comments reveal a disconnect between the companies' public and private stances on the issue. The characterization of AI training as "theft of labor" has significant implications for the ongoing debates.
What is confirmed
- A Microsoft executive, Brent Hecht, described AI training on scraped online content as "the largest theft of labor in human history" in a court document.
- The court document was unsealed on 17 September 2026.
Still unconfirmed
- A political leader suggested renaming AI to SI, with the latter meaning "superintelligence", and specifically "stolen".
What to watch next
- Further court documents revealing company stances on AI training
- Decisions on copyright protections for AI training data
- Public statements from Microsoft and OpenAI on AI training practices
confidence 90%Sources used for this update (2)
- en.mgpf.it — The largest theft of labor in human history - Matteo Flora
- www.upriverpress.com — Publishing and “the Largest Theft of Labor in History”
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Microsoft exec called AI training "largest theft of labor" in history
Unsealed court documents reveal Microsoft and OpenAI executives privately described AI training on scraped online content as "the largest theft of labor in human history." This characterization was made in internal memos and sworn statements, shedding light on the companies' practices amid ongoing legal battles over copyright protections and AI training data.
Why it matters
The disclosures emerge as courts examine the use of journalistic material and copyrighted works to build large language models. The cases could reshape AI training data practices and have significant implications for the future of content creation and intellectual property law. The characterizations of AI training as "theft" contradict the companies' public stances on fair use.
What is confirmed
- Microsoft Applied Science director Brent Hecht described OpenAI training AI on scraped news as "an astonishing theft of unprecedented proportions" and "the largest theft of labor in human history."
- Internal Microsoft numbers show that the Copilot tool reduced news click-through rates by as much as ninety-four percent.
What to watch next
- The outcome of the Authors Guild v. OpenAI and Microsoft copyright lawsuit
- Decisions on fair use in AI training data practices
- The impact of unsealed filings on public perception and regulatory scrutiny
confidence 100%Sources used for this update (6)
- www.computeleap.com — The Emails That Could Sink Fair Use | ComputeLeap
- www.aimodeling.com — Unsealed filings: Microsoft exec privately called AI…
- www.aipulse.it — AI Copyright Case: Execs Knew Training Data Was 'Pirated ...
- www.cognitivemetropolis.com — AI’s Content Heist: The Business Model Is Theft ...
- finance.biggo.com — OpenAI Used Pirated Books for AI Training Despite Knowing ...
- humandriven-ai.com — AI and Labor: The 'Largest Theft of Labor' Debate — Human ...
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Microsoft Director Called AI Training Largest Theft Of Labor
Newly unsealed court documents reveal that a Microsoft director of applied science privately characterized the large-scale scraping of online content for artificial intelligence training as an astonishing theft and potentially the largest theft of labor in human history. Additional internal Microsoft numbers show that the Copilot tool reduced news click-through rates by as much as ninety-four percent, with company documents labeling this outcome a doom loop. These disclosures emerge amid ongoing legal battles over copyright protections and the utilization of journalistic material to build large language models.
Why it matters
The unsealing of these internal Microsoft communications provides direct evidence of how major technology companies privately assessed the implications of web scraping. Publishers involved in copyright litigation argue that such admissions weaken the legal defenses deployed by artificial intelligence developers. The revelations highlight an internal conflict between commercial deployment and the economic survival of digital news organizations.
What is confirmed
- Microsoft's director of applied science privately described the large-scale use of online content to train AI as an astonishing theft and potentially the largest theft of labour in human history.
- Microsoft numbers show Copilot cut news click-throughs by up to 94 percent.
- Microsoft documents call the result a doom loop.
What to watch next
- Further court rulings on how internal Microsoft documents impact the copyright defenses of AI companies.
- Additional unsealing of court records concerning publisher lawsuits against Microsoft and OpenAI.
confidence 100%Sources used for this update (2)
- www.wionews.com — Microsoft executive called AI training the ‘largest theft of labour in human history’
- thenextweb.com — A Microsoft scientist called AI training the largest theft of labor
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Microsoft Executive Called AI Scraping "Largest Theft of Labor in Human History"
Unredacted court filings reveal a Microsoft director privately described AI training on scraped content as the "largest theft of labor in human history." This admission surfaces amid ongoing legal disputes over the use of news content to train large language models. The New York Times alleges that both Microsoft and OpenAI were aware that using this content constituted theft and posed an existential threat to publishers. News outlets argue these internal admissions could undermine the copyright defenses currently used by the AI companies.
Why it matters
The dispute centers on whether scraping public web data for AI training is legal or a violation of copyright. This case highlights the tension between AI development and the economic viability of the publishing industry.
What is confirmed
- A Microsoft executive described AI scraping as the "largest theft of labor in human history" in court records.
- Unredacted filings contain the Microsoft executive's comments on AI training.
Still unconfirmed
- Internal quotes from executives threaten the copyright defense of OpenAI and Microsoft.
What to watch next
- Further unsealing of internal communications between Microsoft and OpenAI regarding publisher impact.
confidence 90%Sources used for this update (11)
- Financial Times — OpenAI staff knew the ‘existential threat’ AI posed to publishers, New York Times claims
- TechCrunch — Microsoft exec called AI scraping ‘the largest theft of labor in human history,' new unredacted filings reveal
- arstechnica.com — Microsoft exec called AI scraping the “largest theft of labor in human history”
- washingtonpost.com — Microsoft exec called AI the ‘largest theft of labor’ in history, court records show
- The New York Times — Inside Microsoft and OpenAI, Worry About Damaging the Publishing Industry
- Reuters — OpenAI, Microsoft executives' quotes on AI training threaten copyright defense, news outlets argue
- Tech Xplore — NYT alleges Microsoft, OpenAI knew using news content was theft
- 404media.co — ‘Doom Loop’: OpenAI and Microsoft Admits LLMs Are Destroying the Web and Built on Theft
- jen.jiji.com — Kazakhstan calls for greater digital trade cooperation within SCO
- jen.jiji.com — China’s Spirit AI develops robot software for broader industrial use
- www.sofx.com — Microsoft Executive Called AI Training the ‘Largest Theft of Labor in History’
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