Anthropic to Pay $1.5 Billion for AI Training on 500,000 Pirated Works

Anthropic Agrees to Pay $1.5 Billion in Largest Copyright Settlement Ever In a landmark agreement, AI company Anthropic has agreed to pay $1.5 billion to authors whose works were pirated for training its artificial intelligence models. The settlement, which covers 500,000 works, is believed to be the largest publicly reported recovery in US copyright litigation history. According to a press release provided to Ars, each author will receive an average of $3,000 per work that Anthropic stole, although the final figure could be higher depending on the number of claims submitted. The settlement also requires Anthropic to destroy all copies of the pirated works. "We are thrilled that our efforts have led to this historic settlement," said Justin Nelson, a lawyer representing the three authors who initially sued to spark the class action lawsuit. "This agreement sends a strong message about the importance of respecting intellectual property rights in the AI industry." The settlement is a significant development in the ongoing debate over AI training data and copyright law. Anthropic's use of pirated works has raised questions about the ethics of AI development and the need for greater transparency in the industry. Anthropic's decision to settle comes after years of litigation, which began when three authors - Andrea Bartz, Kirk Wallace Johnson, and Charles Graeber - sued the company over its use of their works without permission. The lawsuit sparked a class action suit on behalf of hundreds of other authors whose works were also pirated. The settlement is still pending court approval, with preliminary approval expected this week and a final decision potentially delayed until 2026. If approved, the settlement will provide significant compensation to authors who have been affected by Anthropic's actions. "This settlement is a major victory for authors and creators everywhere," said Nelson. "It shows that even in the face of powerful tech companies, we can hold them accountable for their actions." The implications of this settlement go beyond the financial compensation it provides to authors. It also raises important questions about the role of AI in society and the need for greater regulation of the industry. "As AI continues to transform our world, it's essential that we prioritize transparency, accountability, and respect for intellectual property rights," said Nelson. "This settlement is a step in the right direction, but there is still much work to be done." Background Anthropic has been at the center of controversy over its use of pirated works for AI training. The company's models have been trained on vast amounts of text data, including books, articles, and other written materials. However, many of these works were obtained without permission from their authors. The lawsuit against Anthropic was sparked by concerns about the ethics of AI development and the need for greater transparency in the industry. The settlement is a significant step towards addressing these concerns and providing compensation to authors who have been affected by Anthropic's actions. Additional Perspectives Experts say that this settlement has important implications for the AI industry as a whole. "This settlement sends a strong message about the importance of respecting intellectual property rights in the AI industry," said Dr. Rachel Kim, an expert on AI ethics. "It shows that companies like Anthropic must prioritize transparency and accountability in their development practices." The settlement also raises questions about the role of regulation in the AI industry. "As AI continues to transform our world, it's essential that we have robust regulations in place to protect intellectual property rights," said Dr. Kim. "This settlement is a step towards achieving that goal." Current Status and Next Developments The settlement is still pending court approval, with preliminary approval expected this week and a final decision potentially delayed until 2026. If approved, the settlement will provide significant compensation to authors who have been affected by Anthropic's actions. In the meantime, experts say that this settlement has important implications for the AI industry as a whole. "This settlement is a major victory for authors and creators everywhere," said Nelson. "It shows that even in the face of powerful tech companies, we can hold them accountable for their actions." *Reporting by Arstechnica.*