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Brave Software Sues News Corp Over Copyright Dispute

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In a significant legal battle, Brave Software has filed a lawsuit against News Corp in response to a cease-and-desist letter sent by the media conglomerate. The letter warned Brave that it faced potential litigation for allegedly “scraping” copyrighted content from News Corp’s websites, including those of The Wall Street Journal and New York Post. The suit was filed on Wednesday night in San Francisco federal court.

Brave, the company behind the Brave Search engine, argues that its actions are covered under the “fair use” doctrine, asserting that indexing website content is a necessary practice for search engines to operate. The company also contends that News Corp’s actions could undermine advancements in generative AI, claiming that chatbots such as ChatGPT and Google’s Gemini rely on search engine responses, which could be impacted by this dispute.

According to Brave, its market share is a fraction of the search industry, with its search engine holding less than 1% of the market, while Google dominates with nearly 90%, followed by Microsoft’s Bing. Brave accuses News Corp and its partners of attempting to “bully” the company and further cementing the already high barriers to entry in the search engine market.

In a public statement, Robert Thomson, CEO of News Corp, rejected Brave’s claims, labeling the company’s actions as “piratical, parasitical practices” disguised as traditional search. He emphasized that the unauthorized use and sale of News Corp’s copyrighted content to AI engines and other clients is not fair use, but a blatant violation of intellectual property rights.

This legal battle adds to the growing tensions between publishers and tech companies over the use of copyrighted content in support of AI technologies. News Corp has previously filed lawsuits against other companies, including Perplexity AI, for alleged unauthorized copying of its articles.

In its lawsuit, Brave is seeking a declaration from the court that its use of copyrighted News Corp content for search indexing purposes is not a form of infringement. The case highlights the broader conflict between content creators, who argue for protection of their intellectual property, and technology companies, which push for more access to such content to power AI developments.

SoftBank and OpenAI to Build AI Data Center in Japan

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SoftBank is set to transform a former Sharp LCD panel plant in Osaka, Japan, into a state-of-the-art AI data center in collaboration with OpenAI, the U.S.-based creator of ChatGPT, according to a Nikkei report. The project, expected to cost around 100 billion yen ($677 million), will repurpose the closed factory and surrounding land for cutting-edge AI operations.

The new data center is slated to begin operations in 2026 and will become one of Japan’s largest facilities, with an impressive power capacity of 150 megawatts. This venture aims to commercialize OpenAI’s advanced AI agent model in Japan, allowing for the training of the model using client companies’ data and providing customized AI agents for specific needs.

The total investment in the project could reach as high as 1 trillion yen ($6.77 billion), signaling the significant scale and ambition behind the partnership. The collaboration reflects SoftBank’s ongoing commitment to leading in the AI space and OpenAI’s growing influence in the global AI landscape.

Neither SoftBank nor OpenAI has responded to requests for comment from Reuters at the time of the report.

Google Tests AI-Only Version of Search Engine with New “AI Mode”

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Google has launched an experimental version of its search engine that removes the traditional 10 blue links in favor of AI-generated summaries. This new feature, available to subscribers of Google One AI Premium, can be accessed by clicking on a tab labeled “AI Mode” alongside options like Images and Maps.

Robby Stein, Vice President of Product at Google, explained that the company had received feedback from power users who wanted AI responses for a broader range of searches. Google One AI Premium is a $19.99 per month subscription that offers additional cloud storage and access to exclusive AI features.

In its ongoing push to integrate AI into search, Google has introduced AI Overviews, which provide summaries of search results above the usual links to webpages. These Overviews are already available in over 100 countries, and last year, Google began incorporating ads into these AI summaries.

With AI Mode, the company takes this a step further by offering more detailed AI summaries with links to the sources. The traditional blue links are replaced by a search bar, allowing users to ask follow-up questions. Powered by Google’s custom Gemini 2.0 model, AI Mode is designed with advanced reasoning capabilities, making it more adept at handling complex queries.

This new development represents a significant move for Google, as it faces increased competition from Microsoft-backed OpenAI, which introduced search functions in ChatGPT last October. AI-driven search is now a major area of focus for Google, with Alphabet’s 2024 revenue—mostly driven by search-related advertising—under threat from emerging AI competitors.

However, the shift to AI-powered search has raised concerns. In February, educational technology company Chegg filed a lawsuit against Google, accusing the AI previews of diminishing the demand for original content and harming publishers’ ability to compete.