AI’s Copyright Crisis Begins

We all knew copyright law would be a key issue at the heart of the artificial intelligence (AI) revolution, but we didn’t know when. Well, the time has come. ⌛

Today, The New York Times filed a lawsuit against Microsoft and OpenAI, accusing them of infringing copyright and abusing the newspaper’s intellectual property. In its court filing, the publisher said it looks to hold the two companies accountable for the “unlawful copying and use of The Times’s uniquely valuable works,” claiming billions in statutory and actual damages.

While The Times told CNBC it recognizes the power and potential of GenAI for the public and for journalism, it noted that material used for commercial gain should receive permission from the original source. It continued, saying, “Settled copyright law protects our journalism and content. If Microsoft and OpenAI want to use our work for commercial purposes, the law requires that they first obtain our permission. They have not done so.” 📰

Ultimately, The Times joined several other media publishers in accusing Microsoft, OpenAI, and their competitors of creating a business model based on “mass copyright infringement.” 

Until now, OpenAI and other companies creating generative AI models have been operating under the premise that if they get large enough, the sins they made along the way would ultimately be forgiven. That’s very much like the model Uber and other disruptive companies used, skirting rules and regulations until they became so ingrained in society that regulators had no choice but to retroactively apply fines and punishments that hurt but did not kill the company. 🤠

With The Times enlisting the help of the litigation firm that represented Dominion Voting Systems in its $787.50 million defamation suit against Fox News, many expect this to be the case that sets the tone for the industry going forward. 🧑‍⚖️

Suppose these companies must follow copyright law and get permission from the creators/owners of the assets they’re using to train their AI models. In that case, the industry is likely to grow at a much, much slower pace than initially anticipated. That said, this controversial debate will likely take significant time to work through the courts.

Meanwhile, Apple is taking a different approach. It’s reportedly exploring a deal with news publishers worth at least $50 million to train its generative AI systems on their articles. The consumer tech giant has taken a more conservative approach toward AI, keeping toward the back of the pack and learning from others’ mistakes. 🤝

We’ll have to wait and see what happens. But clearly, the stakes have just been raised for the AI space, with copyright owners showing they’re not going down without a fight. ⚔️

Investors Are Losing Trust

It’s been a rough eighteen months or so for real estate investment trusts (REITs), with higher interest rates giving investors alternative sources of yield and pressuring commercial real estate’s asset values. Unfortunately for Medical Properties Trust (MPT), that pain continues today, with its shares falling back to their Great-Financial-Crisis lows. 😬

The medical-related real estate property operator revealed to investors that one of its tenants, Steward Health Care System, is roughly $50 million behind in rent payments. As a result, MPT will take a $225 million noncash charge to write off rent receivables and other items. 

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Nio & Nikola’s Never-Ending Story

No matter the day, there seems to be an endless stream of electric vehicle (EV) industry news. Let’s get into today’s headlines. 📰

First up is China’s Nio, which just received an additional $2.2 billion investment from Abu Dhabi’s CYVN Holdings, which raised its stake to 20.1%. The fund had last invested in Nio during July, with a $1 billion investment. 

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Pfizer’s Flop Continues

It’s been a rough ride for pharmaceutical giant Pfizer since the end of the pandemic, and that rollercoaster ride continues today. 🎢

The company last announced earnings in October but needed to update Wall Street on its 2024 forecast. It cited weak demand for its Covid products as the reason for a weaker-than-anticipated revenue and earnings forecast.

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Only Some EV-Makers Delivered

Electric vehicle (EV) manufacturers came out with their fourth-quarter delivery numbers today, sending their stocks all over the place. 📊

First, let’s start with everyone’s favorite, Tesla, which delivered mixed news to investors. It managed 1.81 million EV deliveries around the globe in 2023, meeting its full-year guidance and narrowly topping the consensus estimates. That was up 38% YoY but slowed from 2022. 

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