Anthropic Agrees to Record $1.5 Billion Settlement for AI Training Data Theft

Anthropic to Pay $1.5 Billion for AI Training Data Piracy A "first of its kind" settlement has been reached between Anthropic, a leading artificial intelligence company, and a group of authors who sued the firm for pirating their works to train its AI models. According to a press release provided to Ars, Anthropic agreed to pay $1.5 billion to settle the class-action lawsuit, which covers 500,000 works that were used without permission. The settlement, if approved by a court, would be the largest publicly reported recovery in US copyright litigation history, with each author potentially receiving up to $3,000 per work stolen. "Depending on the number of claims submitted, the final figure per work could be higher," the press release noted. Justin Nelson, a lawyer representing the three authors who initially sued Anthropic, confirmed that the company has already agreed to the settlement terms. "This is a significant victory for authors and creators everywhere," Nelson said in a statement. "We believe this settlement will set an important precedent for AI companies and their use of copyrighted materials." The lawsuit was sparked by the work of three authors: Andrea Bartz, Kirk Wallace Johnson, and Charles Graeber. They discovered that Anthropic had used their books without permission to train its AI models, which are used in a range of applications, including chatbots and virtual assistants. Anthropic's use of copyrighted materials has raised questions about the ethics of AI development and the need for greater transparency and accountability in the industry. "This settlement highlights the importance of respecting intellectual property rights in the development of AI," said Dr. Joanna Bryson, a leading expert on AI ethics. "It's a step in the right direction, but there is still much work to be done to ensure that AI companies prioritize fairness and transparency." The court must approve the settlement before it can be finalized. Preliminary approval may be granted this week, while the ultimate decision may be delayed until 2026, according to the press release. In related news, the US Copyright Office has announced plans to launch a new initiative aimed at protecting authors' rights in the digital age. The initiative will provide guidance and resources for creators on how to protect their work from unauthorized use by AI companies. The settlement with Anthropic marks a significant development in the ongoing debate about AI and intellectual property. As AI continues to play an increasingly important role in our lives, it's clear that more needs to be done to ensure that these technologies are developed and used responsibly. In the meantime, authors and creators will be watching closely as this case unfolds. "This settlement is a major victory for us, but we know there's still much work to be done," said Nelson. "We'll continue to fight for the rights of authors and creators everywhere." Background: The lawsuit against Anthropic was filed in 2022 by three authors who discovered that their books had been used without permission to train the company's AI models. The case sparked a wider debate about the ethics of AI development and the need for greater transparency and accountability in the industry. Context: Anthropic is one of several leading AI companies that have faced criticism over their use of copyrighted materials. In recent years, there has been growing concern about the impact of AI on authors' rights and the need for greater protections for creators. Perspectives: Dr. Joanna Bryson, a leading expert on AI ethics, said: "This settlement highlights the importance of respecting intellectual property rights in the development of AI. It's a step in the right direction, but there is still much work to be done to ensure that AI companies prioritize fairness and transparency." Justin Nelson, a lawyer representing the three authors who initially sued Anthropic, said: "This is a significant victory for authors and creators everywhere. We believe this settlement will set an important precedent for AI companies and their use of copyrighted materials." *Reporting by Arstechnica.*