OpenAI argues that restricting AI training on copyrighted works could significantly impact the United States' competitive edge in artificial intelligence development, particularly against China.

The company is advocating for AI training to be classified as fair use under U.S. copyright law, as the Trump administration prepares to release its "US AI Action Plan" in July. This plan could potentially declare AI training as fair use, providing AI companies broader access to training data.

OpenAI defends its training approach, stating that their models are designed to learn patterns and structures rather than replicate copyrighted works. They argue this aligns with copyright law's core objectives and fair use doctrine by creating new content without diminishing the original works' commercial value.

Currently, several key developments are shaping this debate:

• A U.S. judge has ruled against AI training as fair use in a case involving Thomson Reuters' Westlaw
• The UK is developing legislation allowing AI training on copyrighted works with an opt-out mechanism
• The New York Times has filed a major lawsuit against OpenAI regarding copyright issues

OpenAI warns that China will likely continue accessing copyrighted data regardless of restrictions, potentially gaining an advantage if U.S. companies face limitations. They argue that focusing on the AI industry's "freedom to learn" is crucial for maintaining America's competitive position in AI development.

The White House's upcoming AI Action Plan is expected to address these concerns while balancing innovation with appropriate regulatory oversight, potentially reversing some Biden administration directives to support private sector development.

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