Skip to content
Welcome, thoughtbot's Giant Robots listeners!Start here
Media's AI Pivot
7SEP

New York Times' AI legal bill up 32.6%

2 min read
12:32UTC

The New York Times Company booked $4.6m of generative-AI litigation costs in the second quarter, against $3.5m a year earlier. Two years in, the copyright fight is getting dearer.

IndustryDeveloping
Key takeaway

The Times' quarterly bill for its generative-AI copyright litigation is rising, not falling.

The New York Times Company booked $4.6m of pre-tax generative-AI litigation costs in the second quarter of 2026, against $3.5m in the same quarter of 2025, a rise of 32.6 per cent. For the half year the figures are $8.8m against $7.9m, up 12.1 per cent⁠1. After tax the quarter's charge is $3.4m, or $0.02 a share⁠2.

Both years sit inside the same filing, so no external comparison is needed to read the direction. The Times has carried Generative AI Litigation Costs as a discrete named special item since the first quarter of 2024, when it began pursuing its copyright claim over the use of its journalism to train generative models. Management carves the line out of adjusted operating profit as non-recurring, and both comparisons in the filing show it rising anyway.

That accounting choice does work of its own. No other major news publisher reports this as a named line rather than folding it into general and administrative costs, so the Times is building a public record of what defending the position costs while calling it exceptional. The record is useful in settlement talks and useful again when pricing any licence the company later agrees.

The $1.5bn Bartz v Anthropic class settlement set the headline number for what unlicensed training data costs at the end of a case. $4.6m a quarter is what one publisher pays to stay in the argument while it runs, and a smaller title weighing the same suit can now price that fight before filing one. The counter is procedural: legal costs climb as a case moves toward trial, so an accelerating line measures stage as much as escalation. This is the bill for the scraping era, not for anything the Times has deployed.

Deep Analysis

In plain English

The New York Times is suing AI companies, arguing they used its journalism without permission to train their AI models. Fighting that case costs money: legal fees, expert witnesses and years of preparation before a trial even starts. The Times reported spending $4.6m on that fight in the second quarter of 2026 alone, nearly a third more than the same quarter last year, showing the legal bill for pursuing AI companies over its journalism is going up, not down, as the case drags on.

Deep Analysis
Root Causes

The New York Times has run 'Generative AI Litigation Costs' as its own named line item since Q1 2024, the cost of prosecuting its copyright suit against AI developers over unauthorised use of its journalism, not of defending itself against a claim.

The 32.6% year-on-year rise in Q2 and 12.1% for the half show that spend accelerating rather than flattening two years in: discovery and expert-evidence costs in a case this size tend to compound as it nears trial, not taper off.

First Reported In

Update #12 · Palantir deal at USA Today draws union fire

US Securities and Exchange Commission· 7 Sept 2026
Read original →
Different Perspectives
Publicis Groupe
Publicis Groupe
Publicis Groupe credited AI demand for its Connected Media growth in the 13 October third-quarter release, reporting net revenue of €3,808m, up 5.0% organically. It named no AI product, so investors get the AI claim without a product to measure it against.
Educational Broadcasting System
Educational Broadcasting System
Educational Broadcasting System premiered EBS AI Literature Theatre on 16 October, remaking 11 Korean literary classics with generative AI. Korea's public education broadcaster puts AI-made drama on air under its own name, while the BBC's director-general said he 'got in trouble' for praising an AI Doctor Who episode.
Hakuhodo
Hakuhodo
Hakuhodo began selling its in-house Image Similarity Checker on 19 October, scoring AI-generated ad creative against similar images on the web and logging who checked what. The Japanese agency is selling the compliance step around generative advertising and leaves the legal judgment with its clients.
Lisa Nandy
Lisa Nandy
Nandy told Sky on 15 October she is minded to issue a public interest intervention notice on its purchase of ITV's Media and Entertainment business, on four grounds including news plurality. She notes Comcast's Sky News undertakings expire in December 2028 and do not cover ITV News or ITN, in which Sky would take a 20% stake.
Australian Broadcasting Corporation
Australian Broadcasting Corporation
The Australian Broadcasting Corporation asked Parliament's AI committee to extend the News Bargaining Incentive to AI firms and hold them to the copyright, defamation and privacy rules news outlets follow. With SBS telling the same committee that robots.txt is routinely ignored, the public broadcasters are contesting the opt-out Anthropic proposed.
Editorial Perfil
Editorial Perfil
Perfil reported on 14 October that Civil Court No. 57 kept its damages suit against OpenAI and Microsoft out of the federal courts, and it wants a pre-trial inspection of their California servers. Its lawyer says Microsoft Argentina came to mediation without a serious offer, and Perfil seeks payment rather than takedowns.

Written with AI from Lowdown's published reporting. Not individually reviewed by an editor. Editorial standards.