OpenAI and Microsoft are facing a new copyright lawsuit from author Julian Sancton, who alleges unauthorized use of copyrighted works in AI training. The lawsuit differs from previous cases by targeting both companies simultaneously.

Key points of the lawsuit:

• Julian Sancton, author of "Madhouse at the End of the Earth" (2021), filed the class-action in New York federal court
• The suit alleges both companies profited from using copyrighted works without permission
• Microsoft is included due to providing the computing infrastructure for AI training
• ChatGPT allegedly confirmed using Sancton's book in its training data before being updated to avoid such admissions

The lawsuit highlights concerns about:

• OpenAI's transformation from non-profit to for-profit status
• The sources used for AI training data
• The importance of quality content in AI development
• Lack of compensation to content creators

The plaintiff seeks:

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

Unlike traditional learning methods where humans purchase or borrow books, the lawsuit argues that OpenAI provides no compensation to authors while using their work to create competing content.

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