TNB Tech Minute: Publishers Sue Meta Over Alleged Use of Copyrighted Works in AI Training - WSJ Tech News Briefing

Summary3 min read

WSJ Tech News Briefing – Episode Summary
Episode: TNB Tech Minute: Publishers Sue Meta Over Alleged Use of Copyrighted Works in AI Training
Date: May 5, 2026
Host: Julie Chang, The Wall Street Journal

Episode Overview

This Tech News Briefing episode, hosted by Julie Chang, delivers a concise update on some of the day's most critical stories in the tech industry. The main focus centers on a new lawsuit filed by major publishers against Meta over the alleged use of copyrighted material to train its artificial intelligence (AI) systems. The episode also touches on major workforce changes at PayPal and a stock market update involving Palantir.

Key Discussion Points & Insights

1. Lawsuit: Publishers vs. Meta Over AI Training

[00:16 – 01:08]

Class Action Lawsuit Filed: A coalition of prominent publishers—Cengage Learning, Hachette, Macmillan, and McGraw—have initiated a class action lawsuit against Meta.
Main Allegation: Meta allegedly used millions of copyrighted books and journal articles, obtained from pirated sites, to train its AI platform, Llama.
Additional Claims: The publishers allege that Meta also stripped copyright management information from the materials in order to conceal sources and facilitate unauthorized use.
Meta’s Response:
- A spokesperson stated Meta would fight the suit, claiming that “courts have found training AI on copyrighted material can qualify as fair use.”
Industry Implications: This lawsuit is set against the broader debate over the legality of using copyrighted content for generative AI training, a central issue for content creators and tech giants alike.

2. PayPal Announces Major Layoffs Amid Tech Overhaul

[01:09 – 01:41]

Job Cuts: PayPal plans to cut about 20% of its staff over the next 2–3 years—totaling approximately 4,700 positions.
Motivation: The reduction is part of a strategy to accelerate AI adoption and reduce overall costs.
CEO’s Commentary: According to Julie Chang, PayPal’s CEO admitted:
- “The company has under invested in its technology platform and is falling behind other financial services companies.” ([01:22])
Financial Update: Despite a dip in Q1 profit ($1.11 billion, down from $1.29 billion last year), revenue actually rose to $8.35 billion, surpassing analyst expectations.

3. Palantir’s Stock Dips Despite Record Performance

[01:42 – 02:08]

Stock Movement: Shares of Palantir, known for its data analytics services (notably for the US military), dropped even after the company reported record quarterly revenue and profit.
Analyst Assessment: Benchmark Equity Research attributes the slide to “high expectations and its association with the struggling” sector.
Notable Quote: On its earnings call, Palantir executives criticized competitors:
- “Our rivals offer AI slop… We’re a no slop zone.” ([01:58])
Year-To-Date Decline: Palantir shares were down about 18% through the previous day.

Notable Quotes & Memorable Moments

Meta’s Fair Use Defense:
- “Courts have found training AI on copyrighted material can qualify as fair use.” (Meta spokesperson, summarized at [00:52])
PayPal’s CEO on Tech Investment:
- “The company has under invested in its technology platform and is falling behind other financial services companies.” (Julie Chang quoting CEO, [01:22])
Palantir on Competitors:
- “Palantir executives slammed rivals for offering AI slop and called their own AI platform a no slop zone.” (Julie Chang, [01:58])

Timestamps for Key Segments

[00:16] – Meta sued over AI data training practices
[01:09] – PayPal to lay off 20% of workforce, focus on AI and cost-cutting
[01:42] – Palantir’s stock performance and critical executive call

Episode Tone and Language

The episode maintains a brisk, journalistic tone, delivering news with clarity and precision. Julie Chang provides succinct summaries, direct quotes, and meaningful context for each story, reflecting the Wall Street Journal's professional and impartial reporting style.

For listeners seeking the latest in tech legal battles, corporate pivots toward AI, and Wall Street reactions, this TNB Tech Minute brings sharp, timely insight into three of the day’s biggest stories.

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Transcript3 lines

[00:00]
Atlassian Rovo AI Host
This podcast is brought to you by Atlassian Rovo. Tired of 10 different AI tools creating knowledge gaps? Rovo takes your team from AI novice to AI native by working where you already work, like Jira and Confluence, so your team stays aligned.
[00:17]
Julie Chang
Here's your afternoon TNB Tech minute for Tuesday, May 5th. I'm Julie Chang for the Wall Street Journal. A group of publishers have filed a class action lawsuit against Meta. They allege the tech giant illegally used their copyrighted works to source train its AI platform. Llama plaintiffs include Cengage Learning, Hachette, Macmillan and McGraw. They claim Meta access to millions of books and journal articles from pirating sites and also removed copyright management information to hide its sources and enable unauthorized use. A Meta spokesperson said the company plans to fight the suit, adding that courts have found training AI on copyrighted material can qualify as fair use. PayPal plans to cut a fifth of its staff, roughly 4,700 positions, over the next two to three years. That's according to a person familiar with the matter. The eliminations are part of the company's new plans to accelerate its adoption of AI and cut costs. The layoffs were reported earlier by Bloomberg. PayPal's CEO told investors today that he thinks the company has under invested in its technology platform and is falling behind other financial services companies. PayPal reported a lower first quarter profit of $1.11 billion, down from $1.29 billion a year earlier. But its first quarter revenue rose to $8.35 billion, up from the year ago quarter and beating analysts expectations. And Palantir's shares are sliding despite reporting record quarterly revenue and profit yesterday. Analysts at Benchmark Equity Research said the company is a victim of high expectations and its association with the struggling so the data analytics company known for providing tools to the US military is down about 18% year to date through yesterday. On the earnings call, Palantir executives slammed rivals for offering AI slop and called their own AI platform a no slop zone. And that's it for your TMB Tech minutes. We'll have another quick tech update in the morning.
[02:22]
Atlassian Rovo AI Host
This podcast is brought to you by Atlassian Rovo AI that takes your team from AI novice to AI native. What if AI handled the busy work for you? Updating JIRA tickets, drafting campaign briefs and Confluence writing project updates, all without you lifting a finger. Meet Rovo AI that works where your team already works, using your company's data and permissions to take action. Get started with rovo@rovo.com that's rovo.com.