Anthropic agrees to pay $1.5B US to settle author class action over AI training

Anthropic Settles $1.5 Billion Lawsuit with Authors Over AI Training

Anthropic has reached a groundbreaking settlement in a class-action lawsuit with a group of authors, agreeing to pay $1.5 billion US to resolve allegations that the artificial intelligence company used pirated copies of their books to train its AI chatbot, Claude, without permission. The settlement, which is pending approval from a San Francisco federal judge, marks a significant milestone in the ongoing debate over the use of copyrighted material in AI training.

The authors, including writers Andrea Bartz, Charles Graeber, and Kirk Wallace Johnson, filed the lawsuit last year, accusing Anthropic of unlawfully using millions of pirated books to teach its AI assistant. The company, backed by Amazon and Alphabet, has denied any wrongdoing but has agreed to destroy downloaded copies of books acquired through piracy sites such as LibGen and PiLiMi as part of the settlement.

The proposed deal, if approved, would be the largest publicly reported copyright recovery in history, with an estimated $3,000 US going to each author covered in the class action. The Authors Guild, which has been a vocal advocate for authors’ rights in the digital age, hailed the settlement as a crucial step in holding AI companies accountable for the use of creative work without proper compensation.

While the settlement resolves the immediate legal dispute, the broader question of fair use in AI training remains a contentious issue. Tech companies like Anthropic, OpenAI, Microsoft, and Meta Platforms have argued that their systems make fair use of copyrighted material to create new, transformative content. However, recent court rulings have raised questions about the legality of using copyrighted work without permission for AI training.

In a statement, Anthropic emphasized its commitment to developing safe AI systems that respect intellectual property rights and contribute to scientific discovery and problem-solving. The company’s willingness to settle the lawsuit demonstrates a recognition of the importance of upholding authors’ rights in the digital economy.

As the debate over AI and copyright continues to evolve, the settlement between Anthropic and the authors serves as a reminder of the need for transparency and accountability in the use of creative work for technological innovation. The outcome of this case could have far-reaching implications for how tech companies approach the use of copyrighted material in AI development, shaping the future of intellectual property rights in the digital age.