Tech
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Jon Keegan
2/11/25

Thomson Reuters victorious in first major AI copyright case in US

The first battle in the war between publishers and AI companies is over, and a big publisher has emerged victorious.

News and legal publisher Thomson Reuters has won its lawsuit in the US District Court of Delaware against AI startup and competitor Ross Intelligence.

The original complaint said that Thomson Reuters’ Westlaw legal research database was “illicitly and surreptitiously used... to acquire access to and copy Plaintiffs’ valuable content” to create Ross Intelligence’s AI-powered tool, an alleged violation of the publisher’s copyright.

In a summary judgment, the judge found that Ross Intelligence’s claim of the “fair use” doctrine did not pass all of the four tests. The judge emphasized that Ross Intelligence failed the “most important element of fair use” — the fact that it was using Thomson Reuters’ data to develop a competing product.

Circuit judge Stephanos Bibas wrote:

“Even taking all facts in favor of Ross, it meant to compete with Westlaw by developing a market substitute... It does not matter whether Thomson Reuters has used the data to train its own legal search tools; the effect on a potential market for AI training data is enough. Ross bears the burden of proof. It has not put forward enough facts to show that these markets do not exist and would not be affected.”

But the case may not apply to some of the biggest, thorniest issues with the biggest AI copyright lawsuits still working their way through the courts. Ross Intelligence’s tool was not using generative AI (like ChatGPT), which takes a user’s query and synthesizes answers derived from vast amounts of training data that often includes copyrighted material.

Major cases brought by authors, artists, and news publishers, such as The New York Times’ lawsuit against OpenAI and partner Microsoft, have yet to settle such alleged copyright violations, which could have massive implications for the entire AI industry.

The original complaint said that Thomson Reuters’ Westlaw legal research database was “illicitly and surreptitiously used... to acquire access to and copy Plaintiffs’ valuable content” to create Ross Intelligence’s AI-powered tool, an alleged violation of the publisher’s copyright.

In a summary judgment, the judge found that Ross Intelligence’s claim of the “fair use” doctrine did not pass all of the four tests. The judge emphasized that Ross Intelligence failed the “most important element of fair use” — the fact that it was using Thomson Reuters’ data to develop a competing product.

Circuit judge Stephanos Bibas wrote:

“Even taking all facts in favor of Ross, it meant to compete with Westlaw by developing a market substitute... It does not matter whether Thomson Reuters has used the data to train its own legal search tools; the effect on a potential market for AI training data is enough. Ross bears the burden of proof. It has not put forward enough facts to show that these markets do not exist and would not be affected.”

But the case may not apply to some of the biggest, thorniest issues with the biggest AI copyright lawsuits still working their way through the courts. Ross Intelligence’s tool was not using generative AI (like ChatGPT), which takes a user’s query and synthesizes answers derived from vast amounts of training data that often includes copyrighted material.

Major cases brought by authors, artists, and news publishers, such as The New York Times’ lawsuit against OpenAI and partner Microsoft, have yet to settle such alleged copyright violations, which could have massive implications for the entire AI industry.

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OpenAI and Microsoft reach agreement that moves OpenAI closer to for-profit status

In a joint statement, OpenAI and Microsoft announced a “non-binding memorandum of understanding” for their renegotiated $13 billion partnership, which was a source of recent tension between the two companies.

Settling the agreement is a requirement to clear the way for OpenAI to convert to a for-profit public benefit corporation, which it must do before a year-end deadline to secure a $20 billion investment from SoftBank.

OpenAI also announced that the controlling non-profit arm would hold an equity stake in the PBC valued at $100 billion, which would “making it one of the most well-resourced philanthropic organizations in the world.”

The statement read:

“This recapitalization would also enable us to raise the capital required to accomplish our mission—and ensure that as OpenAI’s PBC grows, so will the nonprofit’s resources, allowing us to bring it to historic levels of community impact.”

Settling the agreement is a requirement to clear the way for OpenAI to convert to a for-profit public benefit corporation, which it must do before a year-end deadline to secure a $20 billion investment from SoftBank.

OpenAI also announced that the controlling non-profit arm would hold an equity stake in the PBC valued at $100 billion, which would “making it one of the most well-resourced philanthropic organizations in the world.”

The statement read:

“This recapitalization would also enable us to raise the capital required to accomplish our mission—and ensure that as OpenAI’s PBC grows, so will the nonprofit’s resources, allowing us to bring it to historic levels of community impact.”

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BofA doesn’t expect Tesla’s ride-share service to have an impact on Uber or Lyft this year

Analysts at Bank of America Global Research compared Tesla’s new Bay Area ride-sharing service with its rivals and found that, for now, its not much competition for Uber and Lyft. “Tesla scale in SF is still small, and we dont expect impact on Uber/Lyft financial performance in 25,” they wrote.

Tesla is operating an unknown number of cars with drivers using supervised full self-driving in the Bay Area, and roughly 30 autonomous robotaxis in Austin. The company has allowed the public to download its Robotaxi app and join a waitlist, but it hasn’t said how many people have been let in off that waitlist.

While the analysts found that Tesla ride-shares are cheaper than traditional ride-share services like Uber and Lyft, the wait times are a lot longer (nine-minute wait times on average, when cars were available at all) and the process has more friction. They also said the “nature of [a] Tesla FSD ‘driver’ is slightly more aggressive than a Waymo,” the Google-owned company that’s currently operating 800 vehicles in the Bay Area.

APPLE INTELLIGENCE

Apple AI was MIA at iPhone event

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Jon Keegan9/10/25
tech
Jon Keegan
9/10/25

Oracle’s massive sales backlog is thanks to a $300 billion deal with OpenAI, WSJ reports

OpenAI has signed a massive deal to purchase $300 billion worth of cloud computing capacity from Oracle, according to a report from The Wall Street Journal.

The report notes that the five-year deal would be one of the largest cloud computing contracts ever signed, requiring 4.5 gigawatts of capacity.

The news is prompting shares to pare some of their massive gains, presumably because of concerns about counterparty and concentration risk.

Yesterday, Oracle shares skyrocketed as much as 30% in after-hours trading after the company forecast that it expects its cloud infrastructure business to see revenues climb to $144 billion by 2030.

Oracle shares were up as much as 43% on Wednesday.

It’s the second example in under a week of how much OpenAI’s cash burn and fundraising efforts are playing a starring role in the AI boom: the Financial Times reported that OpenAI is also the major new Broadcom customer that has placed $10 billion in orders.

Yesterday, Oracle shares skyrocketed as much as 30% in after-hours trading after the company forecast that it expects its cloud infrastructure business to see revenues climb to $144 billion by 2030.

Oracle shares were up as much as 43% on Wednesday.

It’s the second example in under a week of how much OpenAI’s cash burn and fundraising efforts are playing a starring role in the AI boom: the Financial Times reported that OpenAI is also the major new Broadcom customer that has placed $10 billion in orders.

Large companies have started to drop AI from their businesses

Census data shows drop in large companies using AI

AI appears to be everywhere, but that doesn’t mean big companies have fully embraced the use of the technology in their day-to-day business.

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