
Microsoft is facing a legal challenge from publishers, including The New York Times, over its AI Copilot's use of copyrighted content. In court filings, Microsoft claims that less than 1% of 8.2 million chat logs showed significant overlap with copyrighted material, arguing this supports their case for fair use. The New York Times disagrees, accusing Microsoft and OpenAI of using their content to create commercial products that compete with their journalism. The case's outcome could have significant implications for AI training practices and copyright law.
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© TechCrunch AIxAI's attempt to dismiss the NAACP's Clean Air Act lawsuit failed after a federal judge ruled that its gas turbines are not exempt mobile sources and that plaintiffs have standing. This legal setback confirms that AI infrastructure operators cannot bypass environmental permitting by classifying heavy industrial equipment as temporary or mobile. The ruling forces xAI to face scrutiny over air quality impacts at its Colossus data center, setting a precedent for how large-scale compute facilities are regulated under existing environmental laws.
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OpenAI is scaling back its ambitions as investor appetite for massive AI infrastructure bets cools. The company has lowered its fundraising target from $30 billion to $20 billion, with only $11 billion secured so far against a valuation that has dropped from $1.4 trillion. This retreat signals a growing wariness among Wall Street investors regarding the capital intensity of the AI race, forcing even the most dominant players to adjust their financial expectations.