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Trump DOJ Backs OpenAI in Copyright Battle With New York Times

The Department of Justice argues that training AI models on copyrighted news is 'extraordinarily transformative' fair use.

TechNewsReel Newsroom · September 3, 2026

The U.S. Department of Justice under the Trump administration has filed a legal brief supporting OpenAI in its high-stakes copyright litigation against The New York Times. The move signals a federal pivot toward a broader interpretation of fair use for the development of artificial intelligence.

In the filing, the DOJ argues that the process of training large language models (LLMs) on copyrighted material constitutes fair use because the resulting technology is "extraordinarily transformative." Furthermore, the Department claims that OpenAI's models do not significantly compete with the original articles published by The New York Times, suggesting that the AI's output serves a different purpose than the source journalism.

The Legal Conflict

The intervention comes as part of a broader lawsuit filed by The New York Times against OpenAI and Microsoft. The publication alleges that the AI companies trained their models on millions of copyrighted articles without permission or payment, effectively stealing intellectual property to build a commercial product. The Times argues that this practice undermines the value of its reporting and threatens the economic viability of professional journalism.

Why It Matters

Federal support for AI companies in copyright disputes could fundamentally reshape the legal landscape for the technology sector. By advocating for a transformative fair use standard, the DOJ is providing a potential shield for AI developers, reducing the legal risks associated with using massive, scraped datasets. This could accelerate the pace of AI development and innovation by removing the need for costly, individual licensing agreements with every content creator.

However, this shift poses a significant threat to traditional media business models. If the courts adopt the DOJ's view, news organizations may lose their primary leverage to demand compensation for the use of their archives, potentially eroding the financial foundations of the free press.

What's Next

The court's decision on whether AI training is "transformative" will set a major legal precedent for the entire AI industry. Legal observers are now watching to see if other federal agencies or state governments will align with the DOJ's position. While the DOJ's brief provides a strong wind at OpenAI's back, the final ruling will determine whether the future of AI is built on open access to data or a strict regime of intellectual property payments.

Sources

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