Meta Stock Slips as Publishers Escalate AI Copyright Fight in New Lawsuit

This article first appeared on GuruFocus.

Meta Platforms (NASDAQ:META) slipped about 1% on Tuesday after a group of major publishers filed a federal lawsuit in Manhattan, raising new questions over how the company trained its artificial intelligence systems, according to a court filing.

The case was brought by Elsevier (NYSE:RELX), Macmillan Publishers, Cengage Group, Hachette Livre and McGraw Hill (MH), along with author Scott Turow, who allege Meta (NASDAQ:META) used large volumes of copyrighted material without permission to build its Llama AI models. The filing claims the data may have been sourced without proper licensing or authorization.

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The plaintiffs argue that this approach could pressure traditional publishing revenues by enabling AI systems to generate summaries and book-style content that competes directly with original works.

Meta (NASDAQ:META) has previously prevailed in a related legal challenge but now faces renewed scrutiny as publishers say the new claims are broader in scope. The company is expected to contest the allegations, setting up another high-stakes courtroom battle over whether AI training on copyrighted material qualifies as fair use in the evolving tech landscape involving Nvidia (NASDAQ:NVDA) and Tesla (NASDAQ:TSLA).

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