OpenAI faces class-action lawsuit over how ChatGPT uses data — here's what we know

ChatGPT logo on phone in front of robot thinking
(Image credit: Shutterstock)

A class action lawsuit was filed against ChatGPT creator OpenAI in a San Francisco federal court on Wednesday alleging that the company’s technology violates the copyrights and privacy of millions of users (via The Washington Post and Bloomberg Law). The complaint states that ChatGPT’s machine-learning tech trained on texts “copied by OpenAI without consent, without credit, and without compensation.”

Ryan Clarkson, the managing partner of the Clarkson law firm behind this lawsuit says his firm wants to represent “real people whose information was stolen and commercially misappropriated to create this very powerful technology.” Clarkson also said, “All of that information is being taken at scale when it was never intended to be utilized by a large language model.” Clarkson wants courts to place safeguards on how AI algorithms are trained — and to see that people get compensated if their works are used.

Two people who believe ChatGPT inappropriately used their works include Massachusetts-based authors Paul Tremblay and Mona Awad (via Reuters). The writers claim that ChatGPT generates “very accurate” summaries of their works, which they believe proves their books appeared in ChatGPT’s database of scraped material. The lawsuit in question wants an unspecified amount of money damages for copyright owners whose works ChatGPT allegedly used.

OpenAI claims ChatGPT makes fair use of copyrighted work. Katherine Gardner, who is an intellectual property lawyer at the law firm Gunderson Dettmer says fair uses is “an open issue that we will be seeing play out in the courts in the months and years to come.” She also said that “when you put content on a social media site or any site, you’re generally granting a very broad license to the site to be able to use your content in any way.” Gardner said it will be difficult for users to claim they’re entitled to compensation for the use of their data.

Outlook 

Clarkson told The Washington Post that OpenAI was the “natural first target” for this lawsuit after it initiated an “AI arms race.” In that sense, this could be the first of many lawsuits brought against companies like OpenAI.

It’s hard to tell how the court (or courts) will side in this case given the novelty of the circumstances. Perhaps we’ll see concrete safeguards established by the law to better ensure copyrights aren’t violated by ChatGPT, Google Bard and other AI chatbots.

More from Tom's Guide

TOPICS
Tony Polanco
Senior Computing Writer

Tony is a computing writer at Tom’s Guide covering laptops, tablets, Windows, and iOS. During his off-hours, Tony enjoys reading comic books, playing video games, reading speculative fiction novels, and spending too much time on X/Twitter. His non-nerdy pursuits involve attending Hard Rock/Heavy Metal concerts and going to NYC bars with friends and colleagues. His work has appeared in publications such as Laptop Mag, PC Mag, and various independent gaming sites.

Read more
ChatGPT logo on a smart phone resting on a laptop keyboard, lit with a dark purple light
OpenAI has been actively banning users if they’re suspected of malicious activities
ChatGPT on iPhone
ChatGPT went down — full timeline as major outage hit users worldwide
ChatGPT on iPhone
ChatGPT was down — updates on quick outage
ChatGPT search interface
ChatGPT Search is now open to everyone — no account required
OpenAI logo
OpenAI ChatGPT-4.5 is here and it's the most human-like chatbot yet — here's how to try it
DeepSeek logo on phone
It doesn't matter if DeepSeek copied OpenAI — the damage has already been done in the AI arms race
Latest in ChatGPT
ChatGPT on iPhone
ChatGPT was down — updates on quick outage
ChatGPT app on iPhone
I just tested ChatGPT-4.5 with 5 prompts — the good, the bad and the weird
ChatGPT app icon on mobile device
ChatGPT 4.5 — 5 big upgrades you need to know
OpenAI logo
OpenAI ChatGPT-4.5 is here and it's the most human-like chatbot yet — here's how to try it
ChatGPT app icon on mobile device
ChatGPT Plus just got a huge deep research upgrade — here's how to try it now
A person logging into LinkedIn on their phone and laptop
Looking for a job? — 7 prompts to use ChatGPT o3-mini as a job search assistant
Latest in News
Bill Gates in 2019
Bill Gates just predicted the death of every job thanks to AI — except for these three
NYTimes Connections
NYT Connections today hints and answers — Wednesday, March 26 (#654)
Gemini screenshot image
Google unveils Gemini 2.5 — claims AI breakthrough with enhanced reasoning and multimodal power
Samsung Galaxy Z Flip 6 review.
Samsung Galaxy Z Flip 7 design just teased in new cases leak — and the outer display is huge
Google Chrome
Chrome failed to install on Windows PCs, but Google has issued a fix — here's what happened
nyc spring day AI image
OpenAI just unveiled enhanced image generator within ChatGPT-4o — here's what you can do now