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US government sides with OpenAI on issue of training LLMs on copyrighted material

ID
20768
Status
summarized
Published
03 Sep 2026, 1:09 AM
Fetched
03 Sep 2026, 1:33 AM
Provider
TechCrunch
Category
technology
Original URL
https://techcrunch.com/2026/09/02/u-s-government-sides-with-openai-on-issue-of-training-llms-on-copyrighted-material/
Source URL
https://techcrunch.com/feed/

Summary

Score
6.0
Created
03 Sep 2026, 1:33 AM
Tags
Audience
ai_ml_learnerssaas_foundersdevelopers

What happened

The Trump administration filed a 20-page brief defending OpenAI's unlicensed use of copyrighted material to train LLMs in the NYT v. OpenAI lawsuit, arguing that constraining LLM development under fair use doctrine would hinder American AI leadership. The brief references an executive order Trump signed last year. So far, AI training copyright cases have largely favored AI companies — Judge William Alsup ordered Anthropic to pay a $1.5 billion settlement to writers, but not for the training itself.

Why it matters

If US courts continue ruling that training on copyrighted material is fair use, the models Malaysian builders depend on (ChatGPT, Claude, Gemini) will keep being trained on broad corpora without licensing restrictions — but it also means any Malaysian startup training its own models on copyrighted data faces an unsettled legal landscape, since Malaysian copyright law is separate from US fair use doctrine. Founders shipping AI products should not assume US rulings protect them locally.

Discussion angle

What does this mean for Malaysian startups that fine-tune or train models on copyrighted content — does US precedent create a false sense of safety when local copyright law hasn't been tested on AI training?

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