Anthropic Agrees to $1.5 Billion Settlement in US Author Class Action

Anthropic has agreed to pay $1.5 billion to settle a class action lawsuit in the US. The lawsuit was filed by the authors of a book claiming that the company used their work without permission. The settlement is subject to court approval.

Anthropic, the artificial intelligence startup backed by Amazon, has agreed to pay $1.5 billion to settle a class action lawsuit in the United States. The lawsuit was filed by the authors of a book claiming that the company used their work without permission. The settlement, which is subject to court approval, marks a significant milestone for the startup as it continues to navigate legal challenges while expanding its AI capabilities [2].

Anthropic's latest funding round, totaling $13 billion, raised its valuation to $183 billion, almost tripling its valuation from earlier this year [1]. The new capital is expected to boost the company's spending on Amazon Web Services (AWS), which is its main cloud provider. This investment could accelerate the rollout of Project Rainier, Amazon's massive multisite data center, and further enhance Anthropic's AI competitiveness. Amazon's ownership in Anthropic is estimated to be between 15% and 19%, with the startup potentially spending up to $5 billion on AWS next year [1].

The settlement comes amidst ongoing legal scrutiny of Anthropic's practices. In addition to the class action lawsuit, the company has faced other legal challenges, including a lawsuit over privacy violations. However, these legal issues have not deterred investors from backing Anthropic's ambitious goals. The company's run-rate revenue reached more than $5 billion by August, with its Claude family of large language models contributing significantly to this growth [1].

The settlement is a reminder of the importance of intellectual property rights and ethical considerations in the AI industry. As Anthropic continues to develop and deploy advanced AI technologies, it will be crucial for the company to navigate these challenges effectively. The $1.5 billion settlement, while substantial, is a fraction of the company's current valuation, indicating that investors remain confident in Anthropic's long-term prospects.

References:
[1] https://www.marketwatch.com/story/why-anthropics-fresh-183-billion-valuation-is-good-news-for-amazon-5510d97d
[2] https://www.morningstar.com/news/pr-newswire/20250905ny66245/levi-korsinsky-notifies-shareholders-of-rxsight-incrxst-of-a-class-action-lawsuit-and-an-upcoming-deadline