Artificial intelligence company Anthropic has agreed to pay $1.5 billion to settle a class-action lawsuit by book authors who say the company took pirated copies of their works to train its chatbot.
The landmark settlement, if approved by a judge as soon as Monday, could mark a turning point in legal battles between AI companies and the writers, visual artists and other creative professionals who accuse them of copyright infringement.
The company has agreed to pay authors or publishers about $3,000 for each of an estimated 500,000 books covered by the settlement.
“As best as we can tell, it’s the largest copyright recovery ever,” said Justin Nelson, a lawyer for the authors. “It is the first of its kind in the AI era.”
A trio of authors — thriller novelist Andrea Bartz and nonfiction writers Charles Graeber and Kirk Wallace Johnson — sued last year and now represent a broader group of writers and publishers whose books Anthropic downloaded to train its chatbot Claude.
A federal judge dealt the case a mixed ruling in June, finding that training AI chatbots on copyrighted books wasn’t illegal but that Anthropic wrongfully acquired millions of books through pirate websites.
If Anthropic had not settled, experts say losing the case after a scheduled December trial could have cost the San Francisco-based company even more money.
“We were looking at a strong possibility of multiple billions of dollars, enough to potentially cripple or even put Anthropic out of business,” said Thomas Long, a legal analyst for Wolters Kluwer.
U.S. District Judge William Alsup of San Francisco has scheduled a Monday hearing to review the settlement terms.
Anthropic said in a statement Friday that the settlement, if approved, “will resolve the plaintiffs’ remaining legacy claims.”
“We remain committed to developing safe AI systems that help people and organizations extend their capabilities, advance scientific discovery, and solve complex problems,” said Aparna Sridhar, the company’s deputy general counsel.
As part of the settlement, the company has also agreed to destroy the original book files it downloaded.
Books are known to be important sources of data — in essence, billions of words carefully strung together — that are needed to build the AI large language models behind chatbots like Anthropic’s Claude and its chief rival, OpenAI’s ChatGPT.
Alsup’s June ruling found that Anthropic had downloaded more than 7 million digitized books that it “knew had been pirated.” It started with nearly 200,000 from an online library called Books3, assembled by AI researchers outside of OpenAI to match the vast collections on which ChatGPT was trained.
Debut thriller novel “The Lost Night” by Bartz, a lead plaintiff in the case, was among those found in the dataset. Anthropic later took at least 5 million copies from the pirate website Library Genesis, or LibGen, and at least 2 million copies from the Pirate Library Mirror, Alsup wrote.
The Authors Guild told its thousands of members last month that it expected “damages will be minimally $750 per work and could be much higher” if Anthropic was found at trial to have willfully infringed their copyrights. The settlement’s higher award — approximately $3,000 per work — likely reflects a smaller pool of affected books, after taking out duplicates and those without copyright.
On Friday, Mary Rasenberger, CEO of the Authors Guild, called the settlement “an excellent result for authors, publishers, and rightsholders generally, sending a strong message to the AI industry that there are serious consequences when they pirate authors’ works to train their AI, robbing those least able to afford it.”
The Danish Rights Alliance, which successfully fought to take down one of those shadow libraries, said Friday that the settlement would be of little help to European writers and publishers whose works aren’t registered with the U.S. Copyright Office.
“On the one hand, it’s comforting to see that compiling AI training datasets by downloading millions of books from known illegal file-sharing sites comes at a price,” said Thomas Heldrup, the group’s head of content protection and enforcement.
Artificial intelligence company Anthropic has agreed to pay $1.5 billion to settle a class-action lawsuit by book authors who say the company took pirated copies of their works to train its chatbot.
The landmark settlement, if approved by a judge as soon as Monday, could mark a turning point in legal battles between AI companies and the writers, visual artists and other creative professionals who accuse them of copyright infringement.
The company has agreed to pay authors or publishers about $3,000 for each of an estimated 500,000 books covered by the settlement.
“As best as we can tell, it’s the largest copyright recovery ever,” said Justin Nelson, a lawyer for the authors. “It is the first of its kind in the AI era.”
A trio of authors — thriller novelist Andrea Bartz and nonfiction writers Charles Graeber and Kirk Wallace Johnson — sued last year and now represent a broader group of writers and publishers whose books Anthropic downloaded to train its chatbot Claude.
A federal judge dealt the case a mixed ruling in June, finding that training AI chatbots on copyrighted books wasn’t illegal but that Anthropic wrongfully acquired millions of books through pirate websites.
If Anthropic had not settled, experts say losing the case after a scheduled December trial could have cost the San Francisco-based company even more money.
“We were looking at a strong possibility of multiple billions of dollars, enough to potentially cripple or even put Anthropic out of business,” said Thomas Long, a legal analyst for Wolters Kluwer.
U.S. District Judge William Alsup of San Francisco has scheduled a Monday hearing to review the settlement terms.
Anthropic said in a statement Friday that the settlement, if approved, “will resolve the plaintiffs’ remaining legacy claims.”
“We remain committed to developing safe AI systems that help people and organizations extend their capabilities, advance scientific discovery, and solve complex problems,” said Aparna Sridhar, the company’s deputy general counsel.
As part of the settlement, the company has also agreed to destroy the original book files it downloaded.
Books are known to be important sources of data — in essence, billions of words carefully strung together — that are needed to build the AI large language models behind chatbots like Anthropic’s Claude and its chief rival, OpenAI’s ChatGPT.
Alsup’s June ruling found that Anthropic had downloaded more than 7 million digitized books that it “knew had been pirated.” It started with nearly 200,000 from an online library called Books3, assembled by AI researchers outside of OpenAI to match the vast collections on which ChatGPT was trained.
Debut thriller novel “The Lost Night” by Bartz, a lead plaintiff in the case, was among those found in the dataset. Anthropic later took at least 5 million copies from the pirate website Library Genesis, or LibGen, and at least 2 million copies from the Pirate Library Mirror, Alsup wrote.
The Authors Guild told its thousands of members last month that it expected “damages will be minimally $750 per work and could be much higher” if Anthropic was found at trial to have willfully infringed their copyrights. The settlement’s higher award — approximately $3,000 per work — likely reflects a smaller pool of affected books, after taking out duplicates and those without copyright.
On Friday, Mary Rasenberger, CEO of the Authors Guild, called the settlement “an excellent result for authors, publishers, and rightsholders generally, sending a strong message to the AI industry that there are serious consequences when they pirate authors’ works to train their AI, robbing those least able to afford it.”
The Danish Rights Alliance, which successfully fought to take down one of those shadow libraries, said Friday that the settlement would be of little help to European writers and publishers whose works aren’t registered with the U.S. Copyright Office.
“On the one hand, it’s comforting to see that compiling AI training datasets by downloading millions of books from known illegal file-sharing sites comes at a price,” said Thomas Heldrup, the group’s head of content protection and enforcement.
An executive order signed by President Donald Trump late Thursday aims to give political appointees power over the billions of dollars in grants awarded by federal agencies. Scientists say it threatens to undermine the process that has helped make the U.S. the world leader in research and development.
The order requires all federal agencies, including FEMA, the National Science Foundation and the National Institutes of Health, to appoint officials responsible for reviewing federal funding opportunities and grants, so that they “are consistent with agency priorities and the national interest.”
It also requires agencies to make it so that current and future federal grants can be terminated at any time — including during the grant period itself.
Agencies cannot announce new funding opportunities until the new protocols are in place, according to the order. The Trump administration said these changes are part of an effort to “strengthen oversight” and “streamline agency grantmaking.” Scientists say the order will cripple America’s scientific engine by placing control over federal research funds in the hands of people who are influenced by politics and lack relevant expertise.
“This is taking political control of a once politically neutral mechanism for funding science in the U.S.,” said Joseph Bak-Coleman, a scientist studying group decision-making at the University of Washington.
The changes will delay grant review and approval, slowing “progress for cures and treatments that patients and families across the country urgently need,” said the Association of American Medical Colleges in a statement.
The administration has already terminated thousands of research grants at agencies like the NSF and NIH, including on topics like transgender health, vaccine hesitancy, misinformation and diversity, equity and inclusion.
The order could affect emergency relief grants doled out by FEMA, public safety initiatives funded by the Department of Justice and public health efforts supported by the Centers for Disease Control. Experts say the order is likely to be challenged in court.
Federal immigration judges fired by the Trump administration are filing appeals, pursuing legal action and speaking out in an unusually public campaign to fight back.
More than 50 immigration judges — from senior leaders to new appointees — have been fired since Donald Trump assumed the presidency for the second time. Normally bound by courtroom decorum, many are now unrestrained in describing terminations they consider unlawful and why they believe they were targeted.
Their suspected reasons include gender discrimination, decisions on immigration cases played up by the Trump administration and a courthouse tour with the Senate’s No. 2 Democrat.
“I cared about my job and was really good at it,” Jennifer Peyton, a former supervising judge told The Associated Press this week. “That letter that I received, the three sentences, explained no reason why I was fired.”
Peyton, who received the notice while on a July Fourth family vacation, was appointed judge in 2016. She considered it her dream job. Peyton was later named assistant chief immigration judge in Chicago, helping to train, mentor and oversee judges. She was a visible presence in the busy downtown court, greeting outside observers.
She cited top-notch performance reviews and said she faced no disciplinary action. Peyton said she’ll appeal through the Merit Systems Protection Board, an independent government agency Trump has also targeted.
Peyton’s theories about why she was fired include appearing on a “bureaucrat watchdog list” of people accused by a right-wing organization of working against the Trump agenda. She also questions a courthouse tour she gave to Sen. Dick Durbin of Illinois in June.
Durbin blasted Peyton’s termination as an “abuse of power,” saying he’s visited before as part of his duties as a publicly-elected official.
The nation’s immigration courts — with a backlog of about 3.5 million cases — have become a key focus of Trump’s hard-line immigration enforcement efforts. The firings are on top of resignations, early retirements and transfers, adding up to 106 judges gone since January, according to the International Federation of Professional and Technical Engineers, which represents judges. There are currently about 600 immigration judges.
Several of those fired, including Peyton, have recently done a slew of interviews on local Chicago television stations and with national outlets, saying they now have a platform for their colleagues who remain on the bench.
“The ones that are left are feeling threatened and very uncertain about their future,” said Matt Biggs, the union’s president.
Carla Espinoza, a Chicago immigration judge since 2023, was fired as she was delivering a verdict this month. Her notice said she’d be dismissed at the end of her two-year probationary period with the Executive Office for Immigration Review.
California’s challenge of the Trump administration’s military deployment in Los Angeles returned to a federal courtroom in San Francisco on Friday for a brief hearing after an appeals court handed President Donald Trump a key procedural win.
U.S. District Judge Charles Breyer put off issuing any additional rulings and instead asked for briefings from both sides by noon Monday on whether the Posse Comitatus Act, which prohibits troops from conducting civilian law enforcement on U.S. soil, is being violated in Los Angeles.
The hearing happened the day after the 9th Circuit appellate panel allowed the president to keep control of National Guard troops he deployed in response to protests over immigration raids.
California Gov. Gavin Newsom said in his complaint that “violation of the Posse Comitatus Act is imminent, if not already underway” but Breyer last week postponed considering that allegation.
Vice President JD Vance, a Marine veteran, traveled to Los Angeles on Friday and met with troops, including U.S. Marines who have been deployed to protect federal buildings.
According to Vance, the court determined Trump’s determination to send in federal troops “was legitimate” and he will do it again if necessary.
“The president has a very simple proposal to everybody in every city, every community, every town whether big or small, if you enforce your own laws and if you protect federal law enforcement, we’re not going to send in the National Guard because it’s unnecessary,” Vance told journalists after touring a federal complex in Los Angeles.
Vance’s tour of a multiagency Federal Joint Operations Center and a mobile command center came as demonstrations have calmed after sometimes-violent clashes between protesters and police and outbreaks of vandalism and break-ins that followed immigration raids across Southern California earlier this month. Tens of thousands have also marched peacefully in Los Angeles since June 8.
National Guard troops have been accompanying federal agents on some immigration raids, and Marines briefly detained a man on the first day they deployed to protect a federal building. The marked the first time federal troops detained a civilian since deploying to the nation’s second-largest city.
Breyer found Trump acted illegally when, over opposition from California’s governor, the president activated the soldiers. However, the appellate decision halted the judge’s temporary restraining order. Breyer asked the lawyers on Friday to address whether he or the appellate court retains primary jurisdiction to grant an injunction under the Posse Comitatus Act.
California has sought a preliminary injunction giving Newsom back control of the troops in Los Angeles, where protests have calmed down in recent days.
Trump, a Republican, argued that the troops have been necessary to restore order. Newsom, a Democrat, said their presence on the streets of a U.S. city inflamed tensions, usurped local authority and wasted resources.
The demonstrations appear to be winding down, although dozens of protesters showed up Thursday at Dodger Stadium, where a group of federal agents gathered at a parking lot with their faces covered, traveling in SUVs and cargo vans. The Los Angeles Dodgers organization asked them to leave, and they did.
On Tuesday, Los Angeles Mayor Karen Bass lifted a downtown curfew that was first imposed in response to vandalism and clashes with police after crowds gathered in opposition to agents taking migrants into detention.
Trump federalized members of the California National Guard under an authority known as Title 10.
Title 10 allows the president to call the National Guard into federal service when the country “is invaded,” when “there is a rebellion or danger of a rebellion against the authority of the Government,” or when the president is otherwise unable “to execute the laws of the United States.”
Breyer found that Trump had overstepped his legal authority, which he said allows presidents to control state National Guard troops only during times of “rebellion or danger of a rebellion.”
“The protests in Los Angeles fall far short of ‘rebellion,’ ” wrote Breyer, a Watergate prosecutor who was appointed by President Bill Clinton and is the brother of retired Supreme Court Justice Stephen Breyer.
The Trump administration argued that courts can’t second-guess the president’s decisions. The appellate panel ruled otherwise, saying presidents don’t have unfettered power to seize control of a state’s guard, but the panel said that by citing violent acts by protesters in this case, the Trump administration had presented enough evidence to show it had a defensible rationale for federalizing the troops.
For now, the California National Guard will stay in federal hands as the lawsuit proceeds. It is the first deployment by a president of a state National Guard without the governor’s permission since troops were sent to protect Civil Rights Movement marchers in 1965.
Trump celebrated the appellate ruling in a social media post, calling it a “BIG WIN” and hinting at more potential deployments.
Newsom, for his part, has also warned that California won’t be the last state to see troops in the streets if Trump gets his way.
