"The AI startup agreed to pay authors around $3,000 per book for roughly 500,000 works, after it was accused of downloading millions of pirated texts from shadow libraries to train its large language model, Claude. As part of the deal, Anthropic will also destroy data it was accused of illegally acquiring.The fast-growing AI startup announced earlier this week that it had just raised an additional $13 billion in new venture capital funding in a deal that valued the company at $183 billion."
"It has also said that it is currently on pace to generate at least $5 billion in revenues over the next 12 months. The settlement would amounts to nearly a third of that figure or more than a tenth of the new funding it just received. While the settlement does not establish a legal precedent, experts said it will likely serve as an anchor figure for the amount other major AI companies will need to pay if they hope to settle similar copyright infringement lawsuits. For instance, a number of authors are suing Meta for using their books without permission. As part of that lawsuit, Meta was forced to disclose internal company emails that suggest it knowingly used a library of pirated books called LibGen-which is one of the same libraries that Anthropic used."
Anthropic agreed to a $1.5 billion settlement with authors, providing roughly $3,000 per book for about 500,000 works and committing to destroy allegedly illicitly acquired data. The payout followed accusations of downloading millions of pirated texts from shadow libraries to train the Claude language model. Anthropic recently raised $13 billion in new funding at a $183 billion valuation and projects at least $5 billion in revenue over the next 12 months; the settlement represents a significant share of those figures. Experts expect the settlement to influence potential outcomes in similar AI copyright lawsuits involving other major companies.
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