> As outlined in the lawsuit, the Times alleges OpenAI and Microsoft’s large language models (LLMs), which power ChatGPT and Copilot, “can generate output that recites Times content verbatim
Search for "four factors of fair use", e.g. https://fairuse.stanford.edu/overview/fair-use/four-factors/, which courts use to decide if a derived work is fair use. I think OpenAI will get killed in that fourth factor, "the effect of the use upon the potential market", which is what this case is really about. If the use substantially negatively affects the market for the original work, which I think it's easy to argue that it does, that is a huge factor against awarding a fair use exemption to OpenAI.