A significant controversy has emerged in the realm of artificial intelligence (AI) and data privacy, driven by a court order issued in the ongoing copyright lawsuit between The New York Times (NYT) and OpenAI. The directive, mandating the preservation of all ChatGPT user data—including conversations deleted by users—has sparked intense debate about the balance between legal obligations and individual privacy. This development, rooted in a broader dispute over the use of copyrighted material in AI training, is explored in this blog post, written in a passive tone, to provide a comprehensive overview of the issue, its implications, and the surrounding context.
Background of the Lawsuit
A federal lawsuit was initiated by The New York Times against OpenAI and Microsoft in December 2023, alleging that millions of the newspaper’s copyrighted articles were used without permission to train large language models (LLMs) like ChatGPT. It is claimed by the NYT that this unauthorized use constitutes copyright infringement, enabling ChatGPT to reproduce near-verbatim excerpts of its articles or generate summaries that bypass its paywall, thereby threatening its subscription-based revenue model. The lawsuit, consolidated with similar claims from The New York Daily News and the Center for Investigative Reporting, seeks billions in damages and the destruction of datasets containing NYT content. Currently in the discovery phase, the case has been allowed to proceed to trial by a federal judge in March 2025, though a specific trial date has not been established.
The Court’s Data Preservation Order
On May 13, 2025, a directive was issued by U.S. Magistrate Judge Ona T. Wang, requiring OpenAI to preserve and segregate all ChatGPT output log data, including conversations that would otherwise be deleted, such as those manually removed by users or generated in “Temporary Chat” mode, designed to vanish after a session. The order was prompted by concerns from the NYT and co-plaintiffs that relevant evidence, such as chat logs demonstrating access to copyrighted content or paywall circumvention, might be destroyed. It was argued by the plaintiffs that the significant volume of deleted conversations could contain critical evidence, and Judge Wang concurred, noting that no adequate steps to preserve such data had been demonstrated by OpenAI absent a court mandate.
Under OpenAI’s standard policy, user conversations are retained for 30 days post-deletion before permanent removal, aligning with privacy commitments and regulations like GDPR and CCPA. However, this policy has been suspended by the court order, mandating indefinite retention of data for users of ChatGPT’s Free, Plus, Pro, and Team plans, as well as API customers without zero-data-retention agreements. Exemptions have been granted for Enterprise and Edu editions and API clients with zero-data-retention contracts. The preserved data is stored in a secure system, accessible only by a small, audited OpenAI legal and security team for legal purposes, and public disclosure has been prohibited.
OpenAI’s Opposition
The court order has been vehemently opposed by OpenAI, with the company describing it as an “overreach” that undermines user privacy and conflicts with data protection norms. It was stated by OpenAI’s Chief Operating Officer, Brad Lightcap, that the order compels the abandonment of the company’s commitment to allowing users to control their data, including deletion rights. No evidence supporting claims that users engaging in copyright infringement are more likely to delete chats has been identified by OpenAI, and allegations of intentional data destruction have been denied. The significant burden imposed by the order, requiring substantial changes to data infrastructure, has also been highlighted. An appeal to vacate the order was filed by OpenAI on June 3, 2025, with CEO Sam Altman emphasizing that user privacy is a “core principle” and labeling the NYT’s demand as “inappropriate” and a “bad precedent.”
Privacy and Legal Implications
Considerable concerns about user privacy have been raised by the court order. It has been noted by OpenAI that millions of users worldwide, including those unrelated to the lawsuit, are affected, potentially compromising their personal information. On platforms like X, alarm has been expressed by privacy advocates, who warn that sensitive data, including personally identifiable information (PII) entered into ChatGPT or API-powered services, could be retained and accessed. The possibility that the order could set a precedent for broader data retention mandates, akin to requiring internet service providers or search engines to log all user activity indefinitely, has been suggested by some commentators.
The legal dispute also underscores broader tensions between copyright law and AI development. The question of whether using copyrighted material to train LLMs constitutes “fair use”—a doctrine permitting limited use of protected works for purposes like research or education—is central to the lawsuit. It is argued by the NYT that ChatGPT’s ability to reproduce or summarize its articles undermines its business model. In response, it is contended by OpenAI that its models are transformative and that anomalous outputs were generated only through extensive prompt manipulation by the NYT.
Related Incidents
Additional controversy has arisen in the lawsuit. In November 2024, it was alleged by the NYT that 150 hours of search data, compiled by its legal team from OpenAI’s training dataset in a “sandbox” environment, were accidentally erased by OpenAI engineers. Although much of the data was recovered, the loss of original file names and folder structures rendered it unusable for legal purposes, prompting accusations of evidence spoliation. The incident was attributed to an error by OpenAI, which denied intentional deletion. A hearing to address potential sanctions was scheduled for May 27, 2025.
Public and Industry Sentiment
A mix of concern and frustration has been reflected in public sentiment on platforms like X. Shock has been expressed by users over the preservation of deleted ChatGPT conversations, with warnings issued against sharing sensitive data with AI services. Criticism has been directed at the NYT and other news organizations for advocating data retention, viewed by some as prioritizing copyright claims over user privacy. The potential erosion of trust in AI services and broader implications for data privacy in the industry have been highlighted in discussions.
Broader Context
The NYT’s lawsuit is part of a broader wave of legal actions against AI companies. Publishers like Ziff Davis and Reddit have initiated similar lawsuits against OpenAI and Anthropic, respectively, for unauthorized use of content. The outcomes of these cases are expected to shape the future of AI training practices and copyright law, particularly regarding fair use and the balance between innovation and intellectual property rights. The appeal of the data preservation order underscores the ongoing tension between legal obligations and user privacy, a debate likely to intensify as AI adoption grows.
Conclusion
A complex challenge at the intersection of AI, privacy, and copyright law has been presented by the court order mandating OpenAI to preserve all ChatGPT user data, including deleted conversations. While aimed at protecting potential evidence in the NYT’s copyright lawsuit, the order has raised significant privacy concerns and drawn opposition from OpenAI and users. The ongoing appeal and the broader legal battle are poised to have far-reaching implications for AI development and data protection. For further details, sources such as The Verge, Ars Technica, or court filings in the U.S. District Court for the Southern District of New York are recommended. The resolution of this case will likely influence the future of AI and privacy in profound ways.
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