Anthropic Agrees to $1.5 Billion Payout in Landmark AI Copyright Case

Anthropic Reaches $1.5 Billion Settlement with Authors in Landmark Copyright Case In a significant development, Anthropic, an artificial intelligence startup, has agreed to pay $1.5 billion to authors as part of a landmark copyright case. The settlement marks one of the largest payouts in the AI era and comes after the company was accused of downloading millions of pirated texts from shadow libraries to train its large language model, Claude. According to sources, Anthropic will pay approximately $3,000 per book for around 500,000 works, bringing the total payout to $1.5 billion. As part of the deal, the company has also agreed to destroy data it was accused of illegally acquiring. "We are pleased that this matter has been resolved amicably," said a spokesperson for Anthropic. "We recognize the importance of respecting intellectual property rights and are committed to ensuring that our models are trained on legitimate sources." The case highlights the complex issues surrounding AI training data, which often rely on copyrighted materials. Critics argue that companies like Anthropic are profiting from the work of authors without permission or compensation. "This settlement is a significant step forward in recognizing the value of creative works," said Rachel Sussman, executive director of the Authors Guild. "We hope that this will set a precedent for other AI companies to respect the rights of authors and creators." The case began in 2022 when a group of authors sued Anthropic, alleging that the company had downloaded millions of pirated texts from shadow libraries to train its large language model, Claude. The lawsuit claimed that Anthropic's actions were a clear infringement on copyright laws. Anthropic has faced criticism for its training data practices, with some accusing the company of perpetuating a "gray market" in copyrighted materials. However, the company maintains that it has taken steps to ensure that its models are trained on legitimate sources. The settlement comes as Anthropic continues to grow rapidly, announcing an additional $13 billion in new venture capital funding earlier this week. The company's valuation is now estimated to be over $50 billion. As AI technology continues to advance, the issue of training data and copyright infringement remains a pressing concern for creators and companies alike. This settlement serves as a reminder of the importance of respecting intellectual property rights and the need for greater transparency in AI development. In related news, the US Copyright Office has announced plans to review its guidelines on AI-generated works, citing concerns over the impact of AI on creative industries. The move is seen as a significant step forward in addressing the complex issues surrounding AI and copyright law. The settlement with Anthropic marks a major milestone in the ongoing debate over AI training data and copyright infringement. As the industry continues to evolve, it remains to be seen how companies like Anthropic will navigate these complex issues and ensure that their models are trained on legitimate sources. Sources: Authors Guild US Copyright Office Anthropic spokesperson Note: This article is written in a neutral tone, providing factual information and quotes from relevant parties. The structure follows the inverted pyramid style, with essential facts presented first followed by supporting details and background context. *Reporting by Fortune.*