Oh I see - yeah, that's the part of the lawsuit that's about Bing and ChatGPT Browse mode retrieval augmented generation.
It's a separate issue from the fact that the model can regurgitate it's NYT training data.
There's a section on page 63 which helps clarify that:
Defendants materially contributed to and directly assisted
with the direct infringement perpetrated by end-users of the
GPT-based products by way of: (i) jointly-developing LLM
models capable of distributing unlicensed copies of Times
Works to end-users; (ii) building and training the GPT LLMs
using Times Works; and (iii) deciding what content is
actually outputted by the GenAI products, such as grounding
output in Times Works through retrieval augmented generation,
fine-tuning the models for desired outcomes, and/or
selecting and weighting the parameters of the GPT LLMs.
So they are complaining about models that are capable of distributing unlicensed copies (the regurgitated training data issue), the fact that the models were trained on NYT work at all, and the fact that the RAG implementation in Bing and ChatGPT Browse further creates "natural-language substitutes that serve the same informative purpose as the original".