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Anthropic agreed to pay roughly $1.5 billion to settle a copyright infringement lawsuit brought by authors, compensating $3,000 per book for an estimated 500,000 works. The settlement follows Judge William Alsup’s ruling that found Anthropic’s use of legally obtained books for AI training was fair use, but obtaining millions of pirated books from sites like Library Genesis was not. The case represents the first substantive decision on how fair use applies to generative AI systems and suggests a possible shift toward market-based licensing for some AI training data. The settlement awaits court approval as soon as this week. (NPR)
