# OpenAI and Microsoft Internally Warned of Web 'Doom Loop' from AI Data Practices

> The Verge reports that court documents unsealed in the New York Times' lawsuit reveal OpenAI and Microsoft's internal warnings about their own AI training practices. The companies' own records described their web data scraping as a 'doom loop' that could harm the internet, calling it the 'largest theft of labor in human history' and undermining 'fair use.'

- **Topic**: Society
- **Published**: 2026-09-21T02:13:35.956Z
- **Read Time**: 1 min read
- **Canonical URL**: https://highsignal.sh/stories/openai-and-microsoft-internally-warned-of-web-doom-loop-from-ai-data-practices-7392ec6a

## Why It Matters

The internal warnings suggest that OpenAI and Microsoft were aware of the large-scale, potentially damaging consequences their data collection methods could have on the internet and content creators.

## Key Findings & Analysis

### Court Documents Reveal Internal Concerns

Unsealed documents in the New York Times lawsuit show OpenAI and Microsoft warned that their data scraping would cause a 'doom loop' and damage the internet. The documents label the practice as the 'largest theft of labor in human history' and criticize its impact on fair use.

## Original Evidence & Verbatim Citations

> "Recently unsealed court documents in the New York Times' case against OpenAI and Microsoft are pretty damning. The companies' own documentation warned that it was starting a "doom loop" that would damage the web, characterized its scraping of data to train its models as the "largest theft of labor in human history," and that it made a "complete mockery of the idea of fair use.""

— *Grounded field: headline*

> "Recently unsealed court documents in the New York Times' case against OpenAI and Microsoft are pretty damning. The companies' own documentation warned that it was starting a "doom loop" that would damage the web, characterized its scraping of data to train its models as the "largest theft of labor in human history," and that it made a "complete mockery of the idea of fair use.""

— *Grounded field: summary*

> "The companies' own documentation warned that it was starting a "doom loop" that would damage the web, characterized its scraping of data to train its models as the "largest theft of labor in human history," and that it made a "complete mockery of the idea of fair use.""

— *Grounded field: whyItMatters*

> "Recently unsealed court documents in the New York Times' case against OpenAI and Microsoft are pretty damning. The companies' own documentation warned that it was starting a "doom loop" that would damage the web, characterized its scraping of data to train its models as the "largest theft of labor in human history," and that it made a "complete mockery of the idea of fair use.""

— *Grounded field: section:0*

## Primary Sources & Citations

- [OpenAI and Microsoft knew they were starting a ‘doom loop’ for the web](https://www.theverge.com/ai-artificial-intelligence/997633/openai-microsoft-chatgpt-ai-new-york-times-doom-loop-theft-google-zero) — *The Verge (AI)* (Reporting)

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