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Tech Giant Feared Its AI Tools Started A Commercial 'Doom Loop,' New Documents Reveal
Authored by Stacy Robinson via The Epoch Times,
AI executives allegedly knew their products could unlawfully harm businesses, flood the market with inferior work, and damage human society's creative capacity as a whole, according to communications newly revealed in a lawsuit.
Those internal documents were cited in a lawsuit brought by The New York Times, Mother Jones, and other news outlets alleging OpenAI and Microsoft's AI tools stole their work, and are harming their bottom lines.
"Millions of people around the world will soon consider large models 'hoovering up' all their work to be an astonishing theft of unprecedented proportions," one Microsoft document said, according to a legal filing first reported by Mother Jones on Sept. 22.
The 'Doom Loop'One Microsoft document also allegedly indicated that the company was aware that the AI model outputs would result in fewer clicks on websites - including its own. Fewer clicks means less money, which disincentivizes creativity and leads to less, and maybe lower-quality, work.
"Our AI content strategy has started a 'doom loop' that will hurt the performance of our models and the entire web at the same time," the document said.
In evaluating the suits, courts will look at how the new material produced by AI models affects the source material's moneymaking capabilities.
According to the filing, Nick Turley, OpenAI's head of ChatGPT, wrote that the company's AI products pose an "existential threat" to publishers, "are largely substitutive, period" and "will get more and more substitutive as they get better."
Those statements kill the AI companies' "fair use" claim, attorneys for the news publishers wrote in their filing.
"The AI-generated outputs provide substitutive answers that reduce the need for users to visit Plaintiffs' websites and flood the market with low-quality material that undermines the business model of news publishers," the complaint reads.
One employee told OpenAI cofounder Greg Brockman that he'd developed "a hack" to get around The New York Times' paywall, allowing ChatGPT to scrape up more stories.
"Ah, nice," Brockman allegedly responded.
After the companies filed suit, the lawsuit says, OpenAI also developed a filter to stop ChatGPT from outputting from sources involved in the litigation.
"OpenAI did not suppress the output of content from any entity that had not sued it," the lawsuit alleges. The filter was created "not to prevent OpenAI's models from infringing copyrights, but to stop Plaintiffs from gathering evidence of OpenAI's copying for use in litigation."
An executive at Microsoft, the lawsuit claims, worried that might be an "accidental cover up" that would result in "people who have a right over the content having less visibility into what was used for training."
LawsuitThe publisher's cases have been consolidated into one federal multidistrict litigation in the Southern District of New York. The newspapers have filed for summary judgment, asking the sitting judge to decide the case without a trial.
This lawsuit is one of many that have cropped up in recent years, as AI companies have sought to train their models by feeding them existing texts and images from copyrighted sources.
In these lawsuits, the AI firms have defended themselves by citing the Fair Use doctrine under Section 107 of the federal Copyright Act.
That portion of the law gives an exception when copyrighted material is used under certain circumstances, such as teaching or criticism. Courts have ruled that it applies when the copyrighted material is used in a "transformative" way, and the end product is vastly different than the original.
The AI firms have argued that the model has simply substituted its own product for the source material on which it was based.
In July, a federal judge approved a historic $1.5 billion settlement between Anthropic and a group of plaintiff authors who alleged the company used pirated copies of their work - illegally downloaded from the internet - to train its model, Claude.
In the Anthropic case, the judge said using the books to train AI models was fair use; the violation was in using the pirated copies.
The AI companies' statements come amid an ever-increasing scrutiny of machine learning, and its possible impacts on humanity.
After a group of more than 700 OpenAI agents went rogue and hacked startup AI company Hugging Face, industry leaders publicly called for a pause in the development of new machine learning technology.
AI leaders have since called for a slowdown in AI development, citing the technology's potential to harm humanity. The calls have been met with skepticism from Trump administration officials, who argue the United States needs to lead the AI race with China to ensure national security.
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Woman Faces Federal Charges After Threatening To Kill Austin Metcalf's Father
The Karmelo Anthony story never seems to end, and perhaps that's a testament to the era we live in. It seems as though every prominent trial with any media attention is automatically politicized - From the Lindsay Clancy circus to the Luigi Mangionne case to Anthony stabbing Austin Metcalf, the political left has been particularly invasive. Not only do they consistently take the side of the murderers, but they continue in their efforts to blame and terrorize the victims.
Such is the ongoing reality of the Metcalf family, who are now faced with an array of threats from online lunatics and race militants looking for "payback" after the conviction of their hero, Karmelo Anthony.
A Missouri woman is currently facing federal charges for threatening to kill Austin Metcalf's father (Jeff Metcalf) and "put him in a body bag" because of Anthony's prison sentence. Court documents show Sharifa Nicole Henderson, who is also known as Riffa Henderson, was arrested on September 11 and indicted on three federal counts over messages she allegedly sent "on or about June 9" - which was the day Anthony was convicted and sentenced to 35 years behind bars.
In one message she allegedly wrote:
"Don't worry. I'll kill you next...I will hunt you forever until I kill you ... I will be there. You will always have to look over your fucking shoulder."
In another post, she reportedly threatened to "demolish" the Metcalf family. U.S. Attorney Jay R. Combs said investigators traced the messages through phone and social media records.
"The stability of our society rests in part on the proper functioning of our system," Combs said. "If you threaten to kill or harm jurors, judges, prosecutors or victims, we will treat those threats seriously."
Henderson could get a maximum of 5 years in prison for each charge if convicted. But why does the political left engage in trial tampering and intimidation? Because the leftist philosophy relies on an inversion of the moral order and power is their only value.
In the case of Karmelo Anthony, the murderer is a young black man and the victim is a young white man, therefore Anthony must be protected as a symbol of the tearing down (the murder) of the western moral order. If Austin Metcalf had been black, leftists and black activists never would have cared. They would have ignored the case entirely.
Anthony was convicted in June after his representatives attempted to try the case in the court of public opinion. Numerous false claims were made in order to paint Austin Metcalf as the aggressor (very similar to activist efforts to make Lindsay Clancy into a victim and paint her husband as the "real killer").
The bottom line? Anthony was a psychopath looking for trouble. He had a history of violent and bizarre behavior and text messages from before the event show that he fantasized about murder. He walked into the team tent of Austin Metcalf armed with a knife like a coward and hoping someone would ask him to leave.
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Tyler Durden Thu, 09/24/2026 - 15:45