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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.'

Show evidence (1 verified excerpt)
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."
The Verge (AI) · Reporting · Sep 18, 2026
High Signal1 min read

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. [1]

Show evidence (1 verified excerpt)
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."
The Verge (AI) · Reporting · Sep 18, 2026

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Virginia Governor Creates AI Task Force and Limits Data Center Approvals

According to The Verge, Virginia Governor Abigail Spanberger signed an executive order that sets new restrictions on data center projects and creates a state AI task force. The order bans nondisclosure agreements for data center deals, requires faster noise regulations, and mandates a review of backup-generator operations. The new task force will evaluate how the state can address risks from artificial intelligence.

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