In a significant legal development, Microsoft and OpenAI are now parties to yet another class-action case. This time, claims concern the alleged use of web scraping methods for the illicit gathering of personal information. According to the lawsuit, this data was later utilized to train ChatGPT and other artificial intelligence (AI) models.
OpenAI and Microsoft Defendants
This latest class-action lawsuit, filed on September 5th in San Francisco, adds another layer of complexity to the ongoing debate surrounding data privacy and AI development. Represented by a law firm, two unnamed engineers are seeking legal redress for what they perceive as unlawful and detrimental practices by OpenAI and Microsoft.
The lawsuit’s key assertions, as detailed in the filing submitted to the United States District Court for the Northern District of California, revolve around alleged unethical conduct in the development, marketing, and operation of AI products, including ChatGPT-3.5, ChatGPT-4.0, Dall-E, and Vall-E. According to the plaintiffs, these products are said to incorporate stolen private information, including personally identifiable data, harvested from countless internet users, including minors.
The lawsuit takes aim at OpenAI and Microsoft’s actions, alleging a concerted effort to surreptitiously amass vast quantities of private data from the internet. This purported strategy of data accumulation, as the lawsuit contends, was initiated after a restructuring in 2019. The plaintiffs argue that without this alleged theft of private and copyrighted information, the products in question would not have achieved their current status as multi-billion-dollar ventures.
Related: OpenAI Sued for Allegedly Scraping Private User Data to Train ChatGPT
Accusations and Implications
The crux of the lawsuit is a call for the courts to award damages not only to the plaintiffs but also to potential members of the proposed classes, which could encompass individuals whose data was allegedly scraped. Furthermore, the suit seeks a court order for “nonrestitutionary disgorgement” of profits obtained through the alleged illegal data scraping.
Web scraping is the practice of using automated bots, often referred to as “crawlers,” to systematically gather data from websites. This lawsuit specifically accuses OpenAI and Microsoft of knowingly engaging in what is described as “illegal” scraping activities. It’s noteworthy that a strikingly similar class-action lawsuit against OpenAI and Microsoft was filed in the same court district on June 28th. At present, it remains uncertain whether the court or the defendants will consider merging these separate cases.
This isn’t Microsoft’s first encounter with lawsuits involving scraping activities. In 2019, Microsoft, on behalf of its LinkedIn brand, issued a cease-and-desist order against data analytics company HiQ over its data scraping practices. Initially, HiQ received a favorable ruling from the circuit court, but this was later overturned by the Supreme Court. Subsequently, the case was remanded to the circuit court, where Microsoft ultimately prevailed. HiQ ultimately agreed to a settlement with Microsoft.
As of now, both Microsoft and OpenAI have not publicly responded to requests for comments regarding this latest lawsuit. The unfolding legal battle highlights the contentious intersection of data acquisition, AI development, and privacy concerns, setting the stage for a critical examination of these practices within the tech industry.