The big picture: With at least one court ruling that AI training does not qualify as fair use, OpenAI is looking to the Trump administration’s upcoming AI Action Plan to help resolve ongoing copyright disputes. Due out in July, the plan could potentially classify AI training as fair use, granting AI companies unrestricted access to critical training data. OpenAI argues that such a move is essential for the US to maintain its competitive edge in the AI race against China.

US courts are currently grappling with whether AI training qualifies as fair use, with rights holders arguing that AI models pose a market threat by potentially replacing them and diluting creative output. OpenAI and several other AI companies are embroiled in multiple lawsuits, contending that AI transforms copyrighted works rather than serving as a direct substitute. However, a landmark ruling has already favored rights holders, with a judge determining that AI training does not constitute fair use, citing its direct threat to Thomson Reuters’ legal research firm, Westlaw.

The debate is also unfolding internationally, as countries seek to balance copyright protections with the growing demand for AI training.

OpenAI asserts that its models do not replicate copyrighted works for public consumption but instead extract patterns and insights to generate new and distinct content. The company argues that this approach aligns with the fundamental principles of copyright and fair use doctrine.

“OpenAI’s models are trained to not replicate works for consumption by the public. Instead, they learn from the works and extract patterns, linguistic structures, and contextual insights,” OpenAI explained. “This means our AI model training aligns with the core objectives of copyright and the fair use doctrine, using existing works to create something wholly new and different without eroding the commercial value of those existing works.”

During a public comment period, OpenAI urged the US to shift its copyright strategy to promote the AI industry’s “freedom to learn,” warning that restricting American companies from accessing copyrighted data – while Chinese firms face no such limitations – could cost the US its AI leadership.

“The federal government can both secure Americans’ freedom to learn from AI and avoid forfeiting our AI lead to the PRC by preserving American AI models’ ability to learn from copyrighted material,” OpenAI stated.

The company also called for legal protections for AI firms, citing the strain caused by a patchwork of state regulations. As of 2025, legislative tracker MultiState has flagged 832 AI-related laws. OpenAI warned that mirroring the European Union’s strict regulatory approach could stifle innovation, impose burdensome compliance costs, and weaken economic competitiveness and national security.

Instead, it proposed a federal law that preempts state regulations, offering a voluntary public-private partnership where AI companies share industry knowledge in exchange for liability protections.

OpenAI further urged the US to lead global discussions on copyright and AI to prevent less innovative countries from imposing restrictive legal frameworks on American firms. This includes assessing data availability and ensuring US companies retain access to critical training inputs. With China’s rapid AI advancements, such as the open-sourced DeepSeek model, OpenAI cautioned that the US lead in AI is narrowing and requires urgent action to maintain.

Additionally, the company stressed that national security depends on unfettered access to AI training data and called for a balanced approach that fosters innovation while safeguarding intellectual property rights. As the US Copyright Office prepares to release further guidance on AI training in its upcoming report, the stakes are high for both AI firms and copyright holders.