Curated by THEOUTPOST
On Fri, 14 Mar, 8:05 AM UTC
10 Sources
[1]
OpenAI declares AI race "over" if training on copyrighted works isn't fair use
OpenAI is hoping that Donald Trump's AI Action Plan, due out this July, will settle copyright debates by declaring AI training fair use -- paving the way for AI companies' unfettered access to training data that OpenAI claims is critical to defeat China in the AI race. Currently, courts are mulling whether AI training is fair use, as rights holders say that AI models trained on creative works threaten to replace them in markets and water down humanity's creative output overall. OpenAI is just one AI company fighting with rights holders in several dozen lawsuits, arguing that AI transforms copyrighted works it trains on and alleging that AI outputs aren't substitutes for original works. So far, one landmark ruling favored rights holders, with a judge declaring AI training is not fair use, as AI outputs clearly threatened to replace Thomson-Reuters' legal research firm Westlaw in the market, Wired reported. But OpenAI now appears to be looking to Trump to avoid a similar outcome in its lawsuits, including a major suit brought by The New York Times. "OpenAI's models are trained to not replicate works for consumption by the public. Instead, they learn from the works and extract patterns, linguistic structures, and contextual insights," OpenAI claimed. "This means our AI model training aligns with the core objectives of copyright and the fair use doctrine, using existing works to create something wholly new and different without eroding the commercial value of those existing works." Providing "freedom-focused" recommendations on Trump's plan during a public comment period ending Saturday, OpenAI suggested Thursday that the US should end these court fights by shifting its copyright strategy to promote the AI industry's "freedom to learn." Otherwise, the People's Republic of China (PRC) will likely continue accessing copyrighted data that US companies cannot access, supposedly giving China a leg up "while gaining little in the way of protections for the original IP creators," OpenAI argued. "The federal government can both secure Americans' freedom to learn from AI and avoid forfeiting our AI lead to the PRC by preserving American AI models' ability to learn from copyrighted material," OpenAI said. In their policy recommendations, OpenAI made it clear that it thinks funneling as much data as possible to AI companies -- regardless of rights holders' concerns -- is the only path to global AI leadership. "If the PRC's developers have unfettered access to data and American companies are left without fair use access, the race for AI is effectively over," OpenAI claimed. "America loses, as does the success of democratic AI. Ultimately, access to more data from the widest possible range of sources will ensure more access to more powerful innovations that deliver even more knowledge." OpenAI asks Trump for more legal protections Currently, US-based AI companies are strained, OpenAI suggested, as hundreds of state laws attempt to regulate the entire AI industry. One legislative tracker from MultiState flagged 832 laws introduced in 2025 alone. Some of these laws, OpenAI warned, are modeled after strict European Union laws that OpenAI claimed the federal government should reject replicating due to alleged limits on innovation. Altogether, the patchwork of laws "could impose burdensome compliance requirements that may hinder our economic competitiveness and undermine our national security" since they will likely be harder to enforce against Chinese companies, OpenAI said. If Chinese models become more advanced and more widely used by Americans, China could manipulate the models or ignore harms to American users from "illicit and harmful activities such as identity fraud and intellectual property theft," OpenAI alleged. (OpenAI has accused DeepSeek of improperly using OpenAI's data for training.) To prevent the threatened setbacks to US innovation and risks to national security, OpenAI urged Trump to enact a federal law that preempts state laws attempting to regulate AI threats to things like consumer privacy or election integrity, like deepfakes or facial recognition. That federal law, OpenAI suggested, should set up a "voluntary partnership between the federal government and the private sector," where AI companies trade industry knowledge and model access for federal "relief" and "liability protections" from state laws. Additionally, OpenAI wants protections from international laws that it claims risk slowing down America's AI development. The US should be "shaping international policy discussions around copyright and AI and working to prevent less innovative countries from imposing their legal regimes on American AI firms and slowing our rate of progress," OpenAI said. OpenAI suggested that this effort should also include the US government "actively assessing the overall level of data available to American AI firms and determining whether other countries are restricting American companies' access to data and other critical inputs." According to OpenAI, the Trump administration must urgently adopt these recommendations and others regarding rapidly adopting AI in government and methodically building out AI infrastructure, as China's open-sourced advanced AI model DeepSeek "shows that our lead is not wide and is narrowing." "The rapid advances seen with the PRC's DeepSeek, among other recent developments, show that America's lead on frontier AI is far from guaranteed," OpenAI said.
[2]
OpenAI calls for US government to codify 'fair use' for AI training | TechCrunch
In a proposal for the U.S. government's "AI Action Plan," the Trump Administration's initiative to reshape American AI policy, OpenAI called for a U.S. copyright strategy that "[preserves] American AI models' ability to learn from copyrighted material." "America has so many AI startups, attracts so much investment, and has made so many research breakthroughs largely because the fair use doctrine promotes AI development," OpenAI wrote. It's not the first time OpenAI, which has trained many of its models on openly available web data, often without the data owners' knowledge or consent, has argued for more permissive laws and regulations around AI training. Last year, OpenAI said in a submission to the U.K.'s House of Lords that limiting AI training to public domain content "might yield an interesting experiment, but would not provide AI systems that meet the needs of today's citizens." The content owners who've sued OpenAI for copyright infringement will no doubt take issue with the company's latest reassertion of this stance.
[3]
Google calls for weakened copyright and export rules in AI policy proposal | TechCrunch
Google, following on the heels of OpenAI, published a policy proposal in response to the Trump Administration's call for a national "AI Action Plan." The tech giant endorsed weak copyright restrictions on AI training, as well as "balanced" export controls that "protect national security while enabling U.S. exports and global business operations." "The U.S. needs to pursue an active international economic policy to advocate for American values and support AI innovation internationally," Google wrote in the document. "For too long, AI policymaking has paid disproportionate attention to the risks, often ignoring the costs that misguided regulation can have on innovation, national competitiveness, and scientific leadership -- a dynamic that is beginning to shift under the new Administration." One of Google's more controversial recommendations pertains to the use of IP-protected material. Google argues that "fair use and text-and-data mining exceptions" are "critical" to AI development and AI-related scientific innovation. Like OpenAI, the company seeks to codify the right for it and rivals to train on publicly available data -- including copyrighted data -- largely without restriction. "These exceptions allow for the use of copyrighted, publicly available material for AI training without significantly impacting rightsholders," Google wrote, "and avoid often highly unpredictable, imbalanced, and lengthy negotiations with data holders during model development or scientific experimentation." Google, which has reportedly trained a number of models on public, copyrighted data, is battling lawsuits with data owners who accuse the company of failing to notify and compensate them before doing so. U.S. courts have yet to decide whether fair use doctrine effectively shields AI developers from IP litigation. In its AI policy proposal, Google also takes issue with certain export controls imposed under the Biden Administration, which it says "may undermine economic competitiveness goals" by "imposing disproportionate burdens on U.S. cloud service providers." That contrasts with statements from Google competitors like Microsoft, which in January said that it was "confident" it could "comply fully" with the rules. Importantly, the export rules, which seek to limit the availability of advanced AI chips in disfavored countries, carve out exemptions for trusted businesses seeking large clusters of chips. Elsewhere in its proposal, Google calls for "long-term, sustained" investments in foundational domestic R&D, pushing back against recent federal efforts to reduce spending and eliminate grant awards. The company said the government should release data sets that might be helpful for commercial AI training, and allocate funding to "early-market R&D" while ensuring computing and models are "widely available" to scientists and institutions. Pointing to the chaotic regulatory environment created by the U.S.' patchwork of state AI laws, Google urged the government to pass federal legislation on AI, including a comprehensive privacy and security framework. Just over two months into 2025, the number of pending AI bills in the U.S. has grown to 781, according to an online tracking tool. Google cautions the U.S. government against imposing what it perceives to be onerous obligations around AI systems, like usage liability obligations. In many cases, Google argues, the developer of a model "has little to no visibility or control" over how a model is being used and thus shouldn't bear responsibility for misuse. Historically, Google has opposed laws like California's defeated SB 1047, which laid out clearly what would constitute reasonable precautions an AI developer should take before releasing a model and in which cases developers might be held liable for model-induced harms. "Even in cases where a developer provides a model directly to deployers, deployers will often be best placed to understand the risks of downstream uses, implement effective risk management, and conduct post-market monitoring and logging," Google wrote. Google also called disclosure requirements like those being contemplated by the EU "overly broad," and said the U.S. government should oppose transparency rules that require "divulging trade secrets, allow competitors to duplicate products, or compromise national security by providing a roadmap to adversaries on how to circumvent protections or jailbreak models."
[4]
OpenAI wants all the data and for US law to apply everywhere
The rest of the world doesn't think 'fair use' is fair but we should make 'em OpenAI wants the US government to ensure it has access to any data it wants to train GenAI models, and to stop foreign countries from trying to enforce copyright rules against it and other American AI firms. The ChatGPT developer submitted an open letter full of proposals to the White House Office of Science and Technology (OSTP) regarding the Trump administration's AI Action Plan, currently under development. It outlines the company's views on how the White House can support the US AI industry. This includes putting in place a regulatory regime - but one that "ensures the freedom to innovate," of course; an export strategy to let America exert control over its allies while locking out enemies like China; and adopting measures to drive growth, including for federal agencies to "set an example" on adoption. The suggestions regarding copyright display a certain amount of hubris. It talks up the "longstanding fair use doctrine" of American copyright law, and claims this is "even more critical to continued American leadership on AI in the wake of recent events in the PRC," presumably referring to the interest generated by China's DeepSeek earlier this year. America has so many AI startups because the fair use doctrine promotes AI development, OpenAI says, while "rigid copyright rules are repressing innovation and investment," in other markets, singling out the European Union for allowing "opt-outs" for rights holders. The company previously claimed it would be "impossible" to build top-tier AI models that meet today's needs without using people's copyrighted work. It proposes that the US government "take steps to ensure that our copyright system continues to support American AI leadership," and that it shapes international policy discussions around copyright and AI, "to prevent less innovative countries from imposing their legal regimes on American AI firms and slowing our rate of progress." Not content with that, OpenAI wants the US government to actively assess the level of data available to American AI firms and "determine whether other countries are restricting American companies' access to data and other critical inputs." Dr Ilia Kolochenko, CEO at ImmuniWeb and an Adjunct Professor of Cybersecurity at Capitol Technology University in Maryland, expressed concern over OpenAI's proposals. "Arguably, the most problematic issue with the proposal - legally, practically, and socially speaking - is copyright," Kolochenko told The Register. "Paying a truly fair fee to all authors - whose copyrighted content has already been or will be used to train powerful LLM models that are eventually aimed at competing with those authors - will probably be economically unviable," he claimed, as AI vendors "will never make profits." Advocating for a special regime or copyright exception for AI technologies is a slippery slope, he argues, adding that US lawmakers should regard OpenAI's proposals with a high degree of caution, mindful of the long-lasting consequences it may have on the American economy and legal system. OpenAI also proposes maintaining the three-tiered AI diffusion rule framework, but with some alterations to encourage other nations to commit "to deploy AI in line with democratic principles set out by the US government." The stated aim of this strategy is "to encourage global adoption of democratic AI principles, promoting the use of democratic AI systems while protecting US advantage." OpenAI talks of expanding market share in Tier I countries (US allies) through the use of "American commercial diplomacy policy," banning the use of China-made equipment (think Huawei) and so on. The company also proposes "AI Economic Zones" to be created in America by local, state, and the federal government together with industry, which sounds similar to the UK government's "AI Growth Zones." These will be intended to "speed up the permitting for building AI infrastructure like new solar arrays, wind farms, and nuclear reactors," and would allow exclusions from the National Environmental Policy Act, which requires federal agencies to evaluate the environmental impacts of their actions. Finally, OpenAI proposes that federal agencies should "lead by example" on AI adoption. Uptake in federal departments and agencies remains "unacceptably low," the company says, and wants to see the "removal of known blockers to the adoption of AI tools, including outdated and lengthy accreditation processes, restrictive testing authorities, and inflexible procurement pathways." ®
[5]
OpenAI Calls on U.S. Government to Let It Freely Use Copyrighted Material for AI Training
OpenAI, known for its ChatGPT chatbot, today submitted AI recommendations to the Trump administration, calling for deregulation and policies that give AI companies free rein to train models on copyrighted material in order to compete with China on AI development. AI companies cannot freely innovate while having to comply with "overly burdensome state laws," according to OpenAI. The company claims that laws regulating AI are "easier to enforce" with domestic companies, imposing compliance requirements that "weaken the quality and level of training data available to American entrepreneurs." OpenAI suggests that the government provide "private sector relief" from 781+ AI-related bills introduced in various states. OpenAI outlines a "copyright strategy" that would preserve "American AI models' ability to learn from copyrighted material." OpenAI argues that AI models should be able to be trained freely on copyrighted data, because they are "trained not to replicate works for consumption by the public" and thus align with the fair use doctrine. With its AI copyright laws, OpenAI says that the European Union has repressed AI innovation and investment. OpenAI claims that if AI models are not provided with fair use access to copyrighted data, the "race for AI is effectively over" and "America loses." OpenAI asks that the government prevent "less innovative countries" from "imposing their legal regimes on American AI firms." For AI data sharing, OpenAI suggests a tiered system that would see AI tech shared with countries that follow "democratic AI principles," while blocking access to China and limiting access to countries that might leak data to China. The company also suggests government investment in utilizing AI technology and building out AI infrastructure. The use of copyrighted material for AI training has angered artists, journalists, writers, and other creatives who have had their work absorbed by AI. The New York Times, for example, has sued Microsoft and OpenAI for training AI models on news articles. Many AI tools assimilate and summarize content from news sites, driving users away from primary sources and oftentimes providing incorrect information. Image generation engines like Dall-E and Midjourney have been trained on hundreds of millions images scraped from the internet, leading to lawsuits. OpenAI has submitted its proposals to the Office of Science and Technology Policy for consideration during the development of a new AI Action Plan that is meant to "make people more productive, more prosperous, and more free." The full text is available on OpenAI's website.
[6]
OpenAI Warns US to Let It Train on Copyrighted Material or China Wins AI Race
OpenAI has urged the US government to give the company unrestricted access to copyrighted material to train its AI models and points to China as the reason why it should escape copyright laws. OpenAI is asking the US government to make it easier for AI companies to learn from copyrighted material, citing a need to "strengthen America's lead" globally in advancing the technology. Open AI, the start-up behind ChatGPT and DALL-E, submitted the suggestions to the U.S. government on Thursday as part of President Donald Trump's upcoming "AI Action Plan." President Trump ordered his administration advisors to formulate such a plan earlier this year and has asked for input from the private sector, government, and academia in the U.S. In a 15-page letter to the US government on Thursday, OpenAI urged the federal government to enact a series of "freedom-focused" policy ideas that allow the companies to train its models on copyrighted material -- including an approach that would no longer compel American AI developers to "comply with overly burdensome" state-level AI bills in the U.S. OpenAI says that if it is not able to train its models on copyrighted material, China will take the lead in the AI race. OpenAI described DeepSeek's latest model, R1, as a "noteworthy" advancement, highlighting China's expanding AI ambitions and the increasing competition between the two countries. "While America maintains a lead on AI today, DeepSeek shows that our lead is not wide and is narrowing," Chris Lehane, OpenAI's vice president of global affairs, writes in a letter to the Office of Science and Technology Policy. OpenAI did not specify how it would achieve this but stated that promoting "fair use" policies and reducing intellectual property restrictions could help "[protect] the rights and interests of content creators while also protecting America's AI leadership and national security." The use of copyrighted material in AI training remains highly controversial, as many companies continue to train models on human-created content without consent or compensation.
[7]
Why OpenAI's copyright plan will impact you more than you think
OpenAI is inconsistent in a lot of things -- is it a non-profit or a for-profit? Is Sam Altman fit to be CEO or not? But one thing the company has always been consistent about is its belief that it requires access to copyrighted material for AI training. Now, despite the many voices that disagree, OpenAI wants the U.S. government to approve such unrestricted access by ruling it as "fair use." The company argues that the U.S. will fall behind China in the AI race if companies don't have the freedom to train their models on copyrighted material -- claiming that "overly burdensome state laws" will slow the process and affect results. Recommended Videos If you're a creator, this could impact you, too. Artists, writers, programmers, photographers, and filmmakers with online portfolios, for example, all own their work but if this plan goes through, you'll have no grounds to complain when your content is used to train AI. Even more physical creative pursuits like fashion design, jewelry-making, or sculpting aren't safe if you post photos of your work online. It seems like a cruel joke that OpenAI wants AI training to count as "fair" use of copyrighted work when the products it develops will be used to generate new mangled versions of personal creations. A particularly direct example of this happened just last month when the French cast of Apex Legends was reportedly asked to participate in training an AI model that would eventually be used to generate voice lines for the game. There are a lot of commercial uses for various kinds of creative content but the better AI models get at mimicking it, the harder it will be to make money as a creator. Companies have quite the track record of choosing the least expensive option in any situation, and there's little reason to believe this will change any time soon. It's hard to imagine what the solution will be for creators in this situation. Individuals who really care about protecting their work might start password-protecting their online portfolios, sacrificing just a few old examples to the training sets, and only sharing the rest upon human request. There would definitely be demand for a proper solution too -- some kind of new portfolio or creative sharing platform that only humans can access. It would need to have a pretty hardcore authentication process but there are definitely people out there who care enough about this to sacrifice some convenience. The White House hasn't responded to OpenAI's plan yet, so we'll have to wait and see how this develops.
[8]
OpenAI urges U.S. to allow AI models to train on copyrighted material
OpenAI CEO Sam Altman speaks at the White House on Jan. 21 alongside President Donald Trump, SoftBank CEO Masayoshi Son and Oracle Chairman Larry Ellison, right.Jim Watson / AFP via Getty Images file OpenAI is asking the U.S. government to make it easier for AI companies to learn from copyrighted material, citing a need to "strengthen America's lead" globally in advancing the technology. The proposal is part of a wider plan that the tech company behind ChatGPT submitted to the U.S. government on Thursday as part of President Donald Trump's coming "AI Action Plan." The administration solicited input from interested parties across the private sector, government and academia, framing the future policy as a shift that would "prevent unnecessarily burdensome requirements from hindering private sector innovation." In its proposal, OpenAI urged the federal government to enact a series of "freedom-focused" policy ideas, including an approach that would no longer compel American AI developers to "comply with overly burdensome state laws." Copyright in particular is an issue that has plagued AI developers, as many continue to train their models on human work without informing the original creators, obtaining consent or providing compensation. OpenAI has been sued by several news outlets including the Center for Investigative Reporting, The New York Times, the Chicago Tribune and the New York Daily News over claims of copyright infringement. Several authors and visual artists have also taken legal action against the company over unauthorized use of their copyrighted content. Still, OpenAI said it believes its strategy -- the encouragement of "fair use" policies and fewer intellectual property restrictions -- could "[protect] the rights and interests of content creators while also protecting America's AI leadership and national security." It did not elaborate on the former. Many leaders in the AI industry and members of the Trump administration have framed America's dominance in AI advancements as a matter of national security, comparing it to a high-stakes arms race. "The federal government can both secure Americans' freedom to learn from AI, and avoid forfeiting our AI lead to the PRC by preserving American AI models' ability to learn from copyrighted material," OpenAI's proposal states, using an abbreviation for China's formal name, the People's Republic of China. Shortly after he took office, Trump issued an executive order that revoked former President Joe Biden's policies on AI, stating the United States' previous directives acted "as barriers to American AI innovation." Biden's "Safe, Secure, and Trustworthy Development and Use of Artificial Intelligence" executive order, issued in October 2023, stated that "irresponsible use [of AI] could exacerbate societal harms," including threats to national security. His first week in office, Trump also announced Stargate, a massive AI infrastructure investment venture unveiled at the White House in partnership with OpenAI, Oracle and SoftBank. Executives of those companies pledged to invest an initial $100 billion and up to $500 billion over the next four years in the project, which will be set up as a separate company. OpenAI called for more investment into the technology in its proposal, writing, "Sustaining America's lead on AI means building the necessary infrastructure to compete with the PRC and its commandeered resources." This investment in AI infrastructure, it wrote, would create jobs, boost local economies, modernize the country's energy grid and prepare "an AI-ready workforce." Executives at OpenAI told reporters last month that as part of the ambitious project, the company is considering constructing new data center campuses in 16 states, CNBC reported. OpenAI also encouraged the government to focus on exporting American "democratic AI" to promote the adoption of U.S. technology abroad. OpenAI says this would start with adopting AI tools within the U.S. government as well. (The company previously launched ChatGPT Gov in January, a version of ChatGPT built specifically for government use.) The proposal directly points to DeepSeek R1 -- the AI model recently released by a small Chinese lab that temporarily took ChatGPT's No. 1 spot in the Apple App Store, became the talk of Silicon Valley and caused tech stocks to crash -- as a threat to the United States' global leadership on AI. "While America maintains a lead on AI today, DeepSeek shows that our lead is not wide and is narrowing," the company said.
[9]
If you don't let us scrape copyrighted content, we will lose out to China says OpenAI as it tries to influence US government
The company also tries to frame its scraping as covered by the 'fair use doctrine'. The Trump administration is still asking for public comment on their AI Action plan. And, wouldn't you know it? OpenAI has more than a few thoughts it would like to share with the US government. Namely, it would quite like its AI products to continue to be allowed to scrape copyrighted material, please and thank you. Ahead of the March 15 deadline, OpenAI set out a number of proposals for the US government, which the company also shared in summary on its public blog. The point that stands out to me is titled "A copyright strategy that promotes the freedom to learn," which encourages the US government to "avoid forfeiting our AI lead to the [People's Republic of China] by preserving American AI models' ability to learn from copyrighted material." OpenAI, particularly ChatGPT, is no stranger to gobbling up copyrighted material as training data, with the company arguing last year there's just no way around it. The submitted proposal argues that OpenAI's models are not fully replicating copyrighted material for public consumption but are instead learning "patterns, linguistic structures, and contextual insights" from the works. OpenAI makes the case that, therefore, its "AI model training aligns with the core objectives of copyright and the fair use doctrine, using existing works to create something wholly new and different without eroding the commercial value of those existing works." OpenAI's proposal also broadly casts a dim view on AI legislation currently being discussed outside of the US. For example, OpenAI's proposal criticises the EU and UK's opt-out provisions for copyright holders, claiming, "Access to important AI inputs is less predictable and likely to become more difficult as the EU's regulations take shape. Unpredictable availability of inputs hinders AI innovation, particularly for smaller, newer entrants with limited budgets." I'm personally not buying what OpenAI is selling here; the company's 'fair use' argument largely sidesteps the point that, to build its AI models, copyrighted material has still been taken without the copyright holder's permission, and OpenAI has profited off of using copyrighted material as training data. This also isn't some plucky young creator repurposing big IP to create a genuinely transformative work, this is a multi-billion dollar company hoovering up the work of creatives both big and small to fuel a 'yes, and' machine that is neither funny nor smart-and don't even get me started on the currently in-development 'creative writing' model churning out purple prose. The proposal goes on to claim, "If the PRC's developers have unfettered access to data and American companies are left without fair use access, the race for AI is effectively over. America loses, as does the success of democratic AI. Ultimately, access to more data from the widest possible range of sources will ensure more access to more powerful innovations that deliver even more knowledge." In the wake of DeepSeek going open-source, OpenAI is evidently feeling the pressure. Despite being developed at a fraction of the cost, the China-based AI model's performance is comparable to OpenAI's own ChatGPT-so much so that there were suspicions that DeepSeek may have copied the homework of OpenAI's models. The Trump administration will likely be interested in a number of OpenAI's proposals, given that the current government is decidedly all-in on AI. Besides nixing the Biden presidency's Executive Order 14110, which aimed to put some safety guardrails around the development of AI, there's the 'Stargate' AI infrastructure project. In a bid to support this AI vision with homegrown silicon, there was also that announcement of an eye-watering $100 billion investment to bring TSMC's operations stateside, though that's still under review by the Taiwanese government. Still, even without TSMC's most advanced tech, AI looks like it will have more than a toehold in the US.
[10]
OpenAI Wants Unrestricted Access To Copyrighted Material To Train Its Artificial Intelligence Models; Has Sought The Help Of The U.S. Government To Make This Possible
Artificial general intelligence, or AGI, appears to be OpenAI's 'magnum opus' and it is forming what it likely believes is a well-constructed plan that will allow the company behind the chatbot ChatGPT to achieve its goal, but the journey will be riddled with the controversies. For instance, the latest recommendations that the firm has sent to the U.S. government summarizes that it wishes to leverage copyrighted material to train its models to not just develop AGI but also to compete with China. Some proposals have been sent to the Trump administration and in a nutshell, OpenAI wants free reign that will allow it to sweep through copyrighted material without any checks and balance. This is most certainly a massive ask, and the AI firm could have its ace up its sleeve that might convince the U.S. government to yield to the company's terms; increasing the lead against China in the AI race. Even though OpenAI believes that America is ahead of its rival in this area, this advantage could evaporate soon because DeepSeek has the benefit of 'copyright arbitrage being created by democratic nations that do not clearly protect AI training by statute, like the US, or that reduce the amount of training data through an opt-out regime for copyright holders, like the EU.' "While America maintains a lead on AI today, DeepSeek shows that our lead is not wide and is narrowing. The AI Action Plan should ensure that American-led AI prevails over CCP-led AI, securing both American leadership on AI and a brighter future for all Americans." OpenAI claims that if AI models are not provided with fair use access to copyrighted data, the 'race for AI is effectively over' and 'America loses.' The company also mentions the possibility that 'less innovative countries' cannot be stopped from 'imposing their legal regimes on American AI firms' if OpenAI continues to be stifled by state laws. There has been no word on whether the Trump administration has taken a gander at the AI Action Plan, but it is sure to cause a firestorm in the coming days. After all, OpenAI has been the subject of controversy, as writers, artists, and other creative professionals have expressed their sheer anger that artificial intelligence is using their talent and efforts with impunity. The New York Times has also taken Microsoft and OpenAI to court for training its models on the publication's news articles. There is obviously no pleasant outcome in whatever decision the U.S. government takes, because letting AI run rampant and allowing China to supersede it technologically are two threats that the country wishes to avoid. Should there be any development in this regard, we will update our readers, so stay tuned.
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OpenAI calls for the U.S. government to codify AI training on copyrighted material as fair use, arguing it's crucial for maintaining America's AI leadership against China. The proposal, part of Trump's AI Action Plan, sparks debate on copyright laws and AI regulation.
OpenAI, the company behind ChatGPT, has submitted a proposal to the Trump administration's "AI Action Plan," urging the U.S. government to codify AI training on copyrighted material as fair use 1. This move comes amidst ongoing legal battles and debates surrounding the use of copyrighted works in AI model training.
OpenAI argues that AI transforms copyrighted works during training and that AI outputs aren't substitutes for original works 1. The company claims that their models "are trained to not replicate works for consumption by the public" and instead "learn from the works and extract patterns, linguistic structures, and contextual insights" 1. This, according to OpenAI, aligns with the core objectives of copyright and the fair use doctrine.
However, this stance has met with opposition from rights holders who argue that AI models trained on creative works threaten to replace them in markets and dilute humanity's creative output 1. A landmark ruling has already favored rights holders, with a judge declaring AI training is not fair use in a case involving Thomson-Reuters' Westlaw 1.
OpenAI's proposal heavily emphasizes the competition with China in AI development. The company warns that if the People's Republic of China (PRC) has unfettered access to data while American companies are restricted, "the race for AI is effectively over" 1. OpenAI points to the rapid advances of China's open-sourced AI model DeepSeek as evidence that America's lead in AI is narrowing 1.
In addition to copyright concerns, OpenAI is pushing for broader deregulation and federal intervention in AI policy. The company argues that the current patchwork of state laws (with 832 introduced in 2025 alone) could hinder economic competitiveness and undermine national security 1. OpenAI is calling for a federal law that preempts state regulations and establishes a "voluntary partnership between the federal government and the private sector" 1.
OpenAI's proposal extends beyond domestic policy, suggesting that the U.S. should shape international copyright discussions and prevent "less innovative countries from imposing their legal regimes on American AI firms" 14. This stance has raised concerns about potential conflicts with international copyright laws and norms.
Google has echoed similar sentiments in its own policy proposal, arguing for weak copyright restrictions on AI training and "balanced" export controls 3. Both companies are facing lawsuits from content owners over their use of copyrighted material in AI training 23.
Critics, including cybersecurity experts and legal scholars, have expressed concerns about the implications of OpenAI's proposals. Dr. Ilia Kolochenko, CEO at ImmuniWeb, warns that advocating for a special copyright regime for AI technologies could have long-lasting consequences on the American economy and legal system 4.
As the debate continues, the outcome of these policy discussions will likely have significant implications for the future of AI development, copyright law, and international technology competition.
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