Unredacted filings in The New York Times' copyright lawsuit against OpenAI and Microsoft reveal internal admissions that AI training practices constitute 'theft' of copyrighted content. Microsoft and OpenAI executives acknowledged their models pose an 'existential threat' to publishers, with evidence showing Copilot reduced Times traffic by up to 93% and that paywalled content was scraped without authorization. The admissions undermine the companies' fair-use defense by demonstrating the technology directly substitutes for and harms the market value of original news content.