Jeff Bezos is more of a futurist than we thought.
His purchase of The Washington Post a decade ago may have been a chess move, while Microsoft (MSFT) has been playing AI checkers by owning the WashPo conent.
Read on…
News broke Wednesday that The New York Times (NYT) had filed suit against Microsoft and OpenAI for copyright infringement over the blatant plagiarism of their protected content.
The heart of the issue is that OpenAI clearly used NYT articles in the training of their AI models.
If you haven’t seen the side-by-side examples of plagiarism, check them - out its impressive. It looks like a middle school student copied a page out of the encyclopedia at the library and signed their name at the top as if it were their own book report.
If you know, you know.
Let’s get to brass tacks on this. Microsoft’s stock price dipped a little as traders added up the risk to revenue from this lawsuit and then the shares traded higher again.
That’s all you need to know… this suit is not going to stop or slow Microsoft’s AI cadence, it's simply making the inevitable more certain.
That certainty is that companies that have been developing and training AI are going to have to pay licensing or royalties to the companies that created the original content consumed in the process.
This will add up to fractions of pennies on the dollar for the trillions in revenue that these AI models will generate for their owner’s bottom line over the next decade.
That’s why Microsoft’s stock price didn’t take a hit.
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About the Author
Chris Johnson (“CJ”), a seasoned equity and options analyst with nearly 30 years of experience, is celebrated for his quantitative expertise in quantifying investors’ sentiment to navigate Wall Street with a deeply rooted technical and contrarian trading style.