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- Anthropic to pay $1.5 billion to authors in landmark AI settlement!
Anthropic to pay $1.5 billion to authors in landmark AI settlement!
PLUS: OpenAI could launch its own AI chip next year!
Zulkar Naim
September 06, 2025
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Anthropic to pay $1.5 billion to authors in landmark AI settlement!
OpenAI could launch its own AI chip next year!
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Anthropic to pay $1.5 billion to authors in landmark AI settlement!
Anthropic is facing a substantial financial penalty due to the unauthorized use of hundreds of thousands of copyrighted books for AI development, illustrating the increasing costs of intellectual property infringement in the AI sector.
Things to Know:
Record-Breaking Payout: Anthropic is settling a class-action lawsuit for at least $1.5 billion (plus interest), making it the largest copyright settlement in U.S. history. This could mean around $3,000 per book for roughly 500,000 copyrighted works allegedly used to train their AI models—filed by authors like Andrea Bartz, Charles Graeber, and Kirk Wallace Johnson back in August 2024.
Destruction and Limits: Pending court approval, Anthropic is required to destroy all original training materials and their copies. This stipulation applies only to past actions and does not authorize future data usage, thereby maintaining scrutiny over AI firms' data sourcing methods.
Fair Use Defense and Broader Battles: Anthropic maintains that training AI on legally obtained books is fair use, but a judge ruled they could face trial over claims of using pirated copies. This comes amid other lawsuits from Reddit and Universal Music, plus industry trends like partnerships for licensed data, highlighting the growing tension between AI development and intellectual property rights.
A settlement may impact the AI industry, potentially leading companies to use more expensive licensed datasets or develop new fair-use approaches. This could slow down advancements but promote a more ethical and sustainable system.
OpenAI could launch its own AI chip next year!
OpenAI is planning to mass-produce its own custom AI chips beginning next year, a strategic move to power its AI advancements and compete in the AI industry.
Things to Know:
Partnership Power Play: OpenAI teamed up with US chip heavyweight Broadcom to design these beasts. Broadcom just dropped news of a whopping $10 billion order from a mystery client—spoiler: insiders are pointing fingers at OpenAI, confirming months of whispers in the industry.
Internal Use Only: Unlike some chip makers hawking their wares, OpenAI plans to keep these custom chips in-house. It's all about optimizing their data-crunching AI models without relying on outsiders, echoing strategies from Google and Amazon who've long ditched off-the-shelf solutions for tailored silicon.
Cost-Cutting and Supply Security: This push is fueled by the AI boom's insatiable hunger for compute power. By going custom, OpenAI aims to slash expenses, lock in supplies, and break free from Nvidia's grip—the current king of AI chips that's been raking in billions amid global shortages.
OpenAI's chip venture could ripple across industries, accelerating AI adoption in sectors like healthcare and autonomous vehicles while challenging Nvidia's monopoly and sparking a wave of custom hardware innovation. Who knows—your next gadget might just run on brains built by the AI wizards themselves. Stay tuned for more tech twists!
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