Anthropic to Pay $1.5 Billion for AI Training Data Theft from 500,000 Authors

Anthropic Agrees to Pay $1.5 Billion for AI Training Data Piracy In a landmark settlement, Anthropic has agreed to pay $1.5 billion to authors whose works were pirated to train its artificial intelligence models. The agreement, which covers 500,000 works, marks the largest publicly reported recovery in US copyright litigation history. According to a press release provided to Ars Technica, each author will receive approximately $3,000 per work that Anthropic stole, although this figure may increase depending on the number of claims submitted. "This settlement is a significant victory for authors and creators who have been exploited by AI companies," said Justin Nelson, a lawyer representing the three authors who initially sued to spark the class action. The lawsuit, filed in 2022, alleged that Anthropic had pirated thousands of books without permission or compensation, using them to train its AI models. The company has already agreed to the settlement terms, but a court must approve them before the deal is finalized. Preliminary approval may be granted this week, while the ultimate decision may be delayed until 2026. Anthropic's use of pirated materials raises questions about the ethics of AI training data collection and the impact on creators' rights. "This case highlights the need for greater transparency and accountability in AI development," said Andrea Bartz, one of the authors involved in the lawsuit. "We hope that this settlement will serve as a model for future AI companies to respect the intellectual property rights of creators." The use of pirated materials in AI training is not unique to Anthropic. Many AI companies have faced criticism for using copyrighted works without permission or compensation. However, this settlement marks one of the largest and most significant recoveries to date. In recent years, there has been growing concern about the impact of AI on creators' rights and the need for greater regulation in the industry. This settlement may set a precedent for future cases and highlight the importance of protecting intellectual property rights in the age of AI. The current status of the settlement is that Anthropic has agreed to pay $1.5 billion, but a court must approve the terms before the deal is finalized. The ultimate decision may be delayed until 2026. As the case continues, it will be interesting to see how this settlement impacts the development of AI and the protection of creators' rights. Background: Anthropic is an AI company that uses large language models to generate text and answer questions. The company has faced criticism for its use of pirated materials in training its AI models. In 2022, three authors filed a lawsuit against Anthropic alleging that the company had pirated thousands of books without permission or compensation. Implications: This settlement marks one of the largest and most significant recoveries to date in US copyright litigation history. It highlights the need for greater transparency and accountability in AI development and sets a precedent for future cases involving AI companies and creators' rights. Next Developments: The court must approve the settlement terms before the deal is finalized. Preliminary approval may be granted this week, while the ultimate decision may be delayed until 2026. As the case continues, it will be interesting to see how this settlement impacts the development of AI and the protection of creators' rights. Quotes: "This settlement is a significant victory for authors and creators who have been exploited by AI companies." - Justin Nelson, lawyer representing the three authors involved in the lawsuit "We hope that this settlement will serve as a model for future AI companies to respect the intellectual property rights of creators." - Andrea Bartz, one of the authors involved in the lawsuit *Reporting by Arstechnica.*