OpenAI and Microsoft knew they were starting a ‘doom loop’ for the web

Original Source: The Verge AI
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Read time: 3 min read
•Published: September 19, 2026
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Source: The Verge AI

Executive Summary

Unsealed court documents from the New York Times’ lawsuit reveal that Microsoft and OpenAI officials internally warned of a 'doom loop' that could destroy the web's ecosystem. The filings include descriptions of data scraping as the 'largest theft of labor in human history,' though Microsoft has attempted to distance itself from these internal assertions.

Recently unsealed court documents in the New York Times’ case against OpenAI and Microsoft reveal damning internal assessments. The companies’ own documentation warned that they were starting a “doom loop” that would damage the web, characterizing the scraping of data to train models as the “largest theft of labor in human history” and a “complete mockery of the idea of fair use.” Many of the most striking quotes come from Microsoft’s Director of Applied Science, Brent Hecht. Microsoft has since attempted to distance itself from Hecht’s assertions, with a spokesperson stating that the comments reflect an individual perspective rather than a legal analysis or the company's official views. Another Microsoft executive, Jordan Usdan, characterized Hecht’s role as adversarial and academic, noting his views are divergent from the company's stance on content creators. The 92-page document includes statements from high-profile figures including Satya Nadella and Sam Altman. The introduction suggests that the companies knew they posed an “existential threat” to publishers. These revelations fuel ongoing concerns about the future of the open web and the potential for AI to cannibalize the very data ecosystems it relies on for training.
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