Anthropic AI firm commits to shelling out a staggering $1.5 billion to writers

AI firms grappling with copyright lawsuits potentially reaching a billion-dollar compromise to evade escalating perils, as suggested by Anthropic chatbot developers.

, and Administrator

2025 September 14 . 10:53 AM

2 min read

Anthropic AI Company to Allocate $1.5 Billion to Writers

Anthropic AI firm commits to shelling out a staggering $1.5 billion to writers

In a series of legal battles, AI firm Anthropic is facing lawsuits from copyright holders over the unauthorized use of their works in the training of its AI chatbot, Claude. One such case, taking place in San Francisco, has seen Anthropic agree to a proposed settlement of approximately $1.5 billion.

The San Francisco case revolves around the use of two pirated databases, the responsible parties behind which have yet to be publicly identified. Anthropic's use of these works, allegedly used to train AI chatbot Claude, has raised concerns among copyright holders.

Judge presiding over the case ruled that Anthropic's use of copyrighted texts could potentially fall under the "fair use" principle, but not for the download of the two pirate libraries. The judge concluded that Anthropic knew the databases were illegally created, which could result in penalties of up to $150,000 per book in a trial.

In an attempt to avoid such penalties, Anthropic has decided to settle in the San Francisco case. The settlement proposal amounts to approximately $3,000 per affected work. However, the proposal is yet to receive a judge's approval.

This isn't Anthropic's only legal battle. The company is also embroiled in a separate lawsuit alleging the unauthorized download of around 500,000 books and other texts. The plaintiff authors in this case have also agreed to a settlement proposal, but it too awaits a judge's approval.

The San Francisco case is one of several lawsuits from copyright holders against companies for using works in the training of artificial intelligence. This trend highlights the growing concern over the use of copyrighted materials in AI development and the potential implications for the industry.

Claude, developed by Anthropic, is one of the competitors to ChatGPT from OpenAI. Despite these legal issues, the race to develop advanced AI continues, with implications for various sectors, from technology to entertainment and beyond.

As the legal landscape evolves, it remains to be seen how companies will navigate the use of copyrighted materials in AI development while respecting the rights of authors and creators. The Anthropic case serves as a reminder of the potential consequences of such actions and the importance of adhering to copyright laws.