OpenAI Failed To Defeat ChatGPT's Libel Suit 

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A Georgia judge has ruled against OpenAI's motion to dismiss a defamation lawsuit filed by radio host Mark Walters regarding ChatGPT's "hallucinations."

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OpenAI argued that ChatGPT's output doesn't qualify as libel since it's not a "publication," and they couldn't prove malice or harm in Walters' case.

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The judge, Tracie Cason, didn't specify the reasoning but denied OpenAI's motion to dismiss, allowing the case to proceed.

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Walters sued OpenAI after ChatGPT fabricated a false lawsuit against him, damaging his reputation as a gun rights advocate.

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OpenAI insisted Walters, a public figure, must prove "actual malice," but Walters' lawyer argued against this classification.

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OpenAI introduced extraneous material in its defense, including a disclaimer in ChatGPT's terms and a claim that ChatGPT outputs are "intra-corporate communications."

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With the lawsuit advancing, the question arises: Will ChatGPT's errors be allowed to ruin lives, and the FTC is reportedly investigating potential harms caused by ChatGPT.

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OpenAI did not immediately respond to requests for comment, and the case may shed light on liability for AI-generated content.