• Home
  • News
  • Fortune 500
  • Tech
  • Finance
  • Leadership
  • Lifestyle
  • Rankings
  • Multimedia
TechOpenAI

Creator of buzzy ChatGPT is sued for vacuuming up ‘vast amounts’ of private data to win the ‘A.I. arms race’

By
Teresa Xie
Teresa Xie
,
Isaiah Poritz
Isaiah Poritz
and
Bloomberg
Bloomberg
Down Arrow Button Icon
By
Teresa Xie
Teresa Xie
,
Isaiah Poritz
Isaiah Poritz
and
Bloomberg
Bloomberg
Down Arrow Button Icon
June 28, 2023, 8:08 PM ET
Sam Altman, chief executive officer of OpenAI.
Sam Altman, chief executive officer of OpenAI.David Paul Morris—Bloomberg/Getty Images

ChatGPT creator OpenAI is stealing “vast amounts” of personal information to train its artificial intelligence models in a heedless hunt for profits, a group of anonymous individuals claimed in a lawsuit seeking class action status.

Recommended Video

OpenAI has violated privacy laws by secretly scraping 300 billion words from the internet, tapping “books, articles, websites and posts — including personal information obtained without consent,” according to the sprawling, 157-page lawsuit. It doesn’t shy from sweeping language, accusing the company of risking “civilizational collapse.”

The plaintiffs are described by their occupations or interests but identified only by initials for fear of a backlash against them, the Clarkson Law Firm said in the suit, filed Wednesday in federal court in San Francisco. They cite $3 billion in potential damages, based on a category of harmed individuals they estimate to be in the millions.

‘A Different Approach: Theft’

“Despite established protocols for the purchase and use of personal information, Defendants took a different approach: theft,” they allege. The company’s popular chatbot program ChatGPT and other products are trained on private information taken from what the plaintiffs described as hundreds of millions of internet users, including children, without their permission.

Microsoft Corp., which plans to invest a reported $13 billion in OpenAI, was also named as a defendant.

A spokesperson for OpenAI didn’t immediately respond to a call or email seeking comment on the lawsuit. A spokesperson for Microsoft didn’t respond right away to an email.

ChatGPT and other generative AI applications have stirred intense interest in the technology’s promise but also sparked a firestorm over privacy and misinformation. Congress is debating the potential and dangers of AI as the products raise questions about the future of creative industries and the ability to tell fact from fiction. OpenAI Chief Executive Officer Sam Altman himself, in testimony on Capitol Hill last month, called for AI regulation. But the lawsuit focuses on how OpenAI got the guts of its products to begin with.

Secret Scraping

OpenAI, which is at the forefront of the burgeoning industry, is accused in the suit of conducting an enormous clandestine web-scraping operation, violating terms of service agreements and state and federal privacy and property laws. One of the laws cited is the Computer Fraud and Abuse Act, a federal anti-hacking statute that has been invoked in scraping disputes before. The suit also includes claims of invasion of privacy, larceny, unjust enrichment and violations of the Electronic Communications Privacy Act.

Misappropriating personal data on a vast scale to win an “AI arms race,” OpenAI illegally accesses private information from individuals’ interactions with its products and from applications that have integrated ChatGPT, the plaintiffs claim. Such integrations allow the company to gather image and location data from Snapchat, music preferences on Spotify, financial information from Stripe and private conversations on Slack and Microsoft Teams, according to the suit.

Chasing profits, OpenAI abandoned its original principle of advancing artificial intelligence “in the way that is most likely to benefit humanity as a whole,” the plaintiffs allege. The suit puts ChatGPT’s expected revenue for 2023 at $200 million.

While seeking to represent the massive class of allegedly harmed individuals, and requesting monetary damages to be determined at trial, the plaintiffs are also asking the court to temporarily freeze commercial access to and further development of OpenAI’s products.

Fortune Brainstorm AI returns to San Francisco Dec. 8–9 to convene the smartest people we know—technologists, entrepreneurs, Fortune Global 500 executives, investors, policymakers, and the brilliant minds in between—to explore and interrogate the most pressing questions about AI at another pivotal moment. Register here.
About the Authors
By Teresa Xie
See full bioRight Arrow Button Icon
By Isaiah Poritz
See full bioRight Arrow Button Icon
By Bloomberg
See full bioRight Arrow Button Icon

Latest in Tech

Elon Musk
Big TechSpaceX
SpaceX to offer insider shares at record-setting $800 billion valuation
By Edward Ludlow, Loren Grush, Lizette Chapman, Eric Johnson and BloombergDecember 6, 2025
7 hours ago
Big TechApple
Apple rocked by executive departures, with chip chief at risk of leaving next
By Mark Gurman and BloombergDecember 6, 2025
9 hours ago
Nvidia CEO Jensen Huang said China is better equipped for an AI data center buildout than the U.S.
AITech
Nvidia CEO says data centers take about 3 years to construct in the U.S., while in China ‘they can build a hospital in a weekend’
By Nino PaoliDecember 6, 2025
12 hours ago
Arts & EntertainmentMedia
Former Amazon Studios boss warns the Netflix-Warner Bros. deal will make Hollywood ‘a system that circles a single sun’
By Jason MaDecember 6, 2025
12 hours ago
Jay Clayton
LawCrime
25-year DEA veteran charged with helping Mexican drug cartel launder millions of dollars, secure guns and bombs
By Dave Collins, Michael R. Sisak and The Associated PressDecember 6, 2025
13 hours ago
Elon Musk
LawSocial Media
Elon Musk’s X fined $140 million by EU for breaching digital regulations
By Kelvin Chan and The Associated PressDecember 6, 2025
13 hours ago

Most Popular

placeholder alt text
AI
Nvidia CEO says data centers take about 3 years to construct in the U.S., while in China 'they can build a hospital in a weekend'
By Nino PaoliDecember 6, 2025
12 hours ago
placeholder alt text
Big Tech
Mark Zuckerberg rebranded Facebook for the metaverse. Four years and $70 billion in losses later, he’s moving on
By Eva RoytburgDecember 5, 2025
2 days ago
placeholder alt text
Success
Nvidia CEO Jensen Huang admits he works 7 days a week, including holidays, in a constant 'state of anxiety' out of fear of going bankrupt
By Jessica CoacciDecember 4, 2025
3 days ago
placeholder alt text
Real Estate
The 'Great Housing Reset' is coming: Income growth will outpace home-price growth in 2026, Redfin forecasts
By Nino PaoliDecember 6, 2025
17 hours ago
placeholder alt text
Economy
Two months into the new fiscal year and the U.S. government is already spending more than $10 billion a week servicing national debt
By Eleanor PringleDecember 4, 2025
3 days ago
placeholder alt text
Success
‘Godfather of AI’ says Bill Gates and Elon Musk are right about the future of work—but he predicts mass unemployment is on its way
By Preston ForeDecember 4, 2025
3 days ago
Rankings
  • 100 Best Companies
  • Fortune 500
  • Global 500
  • Fortune 500 Europe
  • Most Powerful Women
  • Future 50
  • World’s Most Admired Companies
  • See All Rankings
Sections
  • Finance
  • Leadership
  • Success
  • Tech
  • Asia
  • Europe
  • Environment
  • Fortune Crypto
  • Health
  • Retail
  • Lifestyle
  • Politics
  • Newsletters
  • Magazine
  • Features
  • Commentary
  • Mpw
  • CEO Initiative
  • Conferences
  • Personal Finance
  • Education
Customer Support
  • Frequently Asked Questions
  • Customer Service Portal
  • Privacy Policy
  • Terms Of Use
  • Single Issues For Purchase
  • International Print
Commercial Services
  • Advertising
  • Fortune Brand Studio
  • Fortune Analytics
  • Fortune Conferences
  • Business Development
About Us
  • About Us
  • Editorial Calendar
  • Press Center
  • Work At Fortune
  • Diversity And Inclusion
  • Terms And Conditions
  • Site Map

© 2025 Fortune Media IP Limited. All Rights Reserved. Use of this site constitutes acceptance of our Terms of Use and Privacy Policy | CA Notice at Collection and Privacy Notice | Do Not Sell/Share My Personal Information
FORTUNE is a trademark of Fortune Media IP Limited, registered in the U.S. and other countries. FORTUNE may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.