Anthropic, the Amazon-backed artificial intelligence startup, on Monday was hit with a class-action lawsuit in California federal court over alleged copyright infringement. Three authors said in the filing that Anthropic “built a multibillion-dollar business by stealing hundreds of thousands of copyrighted books,” including their own.
Anthropic, which was founded by ex-OpenAI research executives, has backers including Google and Salesforce.
Authors Andrea Bartz, Charles Graeber and Kirk Wallace Johnson alleged in the lawsuit that “an essential component of Anthropic’s business model — and its flagship ‘Claude’ family of large language models (or ‘LLMs’)— is the largescale theft of copyrighted works,” later alleging that “Anthropic downloaded known pirated versions of Plaintiffs’ works, made copies of them, and fed these pirated copies into its models.”
The lawsuit follows Anthropic’s June debut of its most powerful AI model yet, Claude 3.5 Sonnet. Claude is one of the chatbots that, like OpenAI’s ChatGPT and Google‘s Gemini, has exploded in popularity in the past year.
“Copyright law prohibits what Anthropic has done here: downloading and copying hundreds of thousands of copyrighted books taken from pirated and illegal websites,” the lawsuit states.
Anthropic did not immediately respond to a request for comment.
This week’s case also follows another lawsuit brought against Anthropic last October, in which Universal Music sued the startup over “systematic and widespread infringement of their copyrighted song lyrics,” per a filing in a Tennessee federal court. Other music publishers, such as Concord and ABKCO, were also named as plaintiffs.
One example from Universal Music’s lawsuit: When a user asked Anthropic’s AI chatbot Claude about the lyrics to the song “Roar” by Katy Perry, it generated an “almost identical copy of those lyrics,” violating the rights of Concord, the copyright owner, per the filing. The lawsuit also named Gloria Gaynor’s “I Will Survive” as an example of Anthropic’s alleged copyright infringement, as Universal owns the rights to its lyrics.
“In the process of building and operating AI models, Anthropic unlawfully copies and disseminates vast amounts of copyrighted works,” the lawsuit stated, later adding, “Just like the developers of other technologies that have come before, from the printing press to the copy machine to the web-crawler, AI companies must follow the law.”
With the news industry broadly struggling to maintain sufficient advertising and subscription revenue to pay for its costly newsgathering operations, many news publications and media outlets are aggressively trying to protect their businesses as AI-generated content becomes more prevalent.
The Center for Investigative Reporting, the country’s oldest nonprofit newsroom, sued OpenAI and lead backer Microsoft in federal court in June for alleged copyright infringement, following similar suits from publications including The New York Times, The Chicago Tribune and The New York Daily News.
In December, The New York Times filed a suit against Microsoft and OpenAI, alleging intellectual property violations related to its journalistic content appearing in ChatGPT training data. The Times said it seeks to hold Microsoft and OpenAI accountable for “billions of dollars in statutory and actual damages” related to the “unlawful copying and use of the Times’s uniquely valuable works,” according to a filing in the U.S. District Court for the Southern District of New York. OpenAI disagreed with the Times’ characterization of events.
The Chicago Tribune, along with seven other newspapers, followed with a suit in April.
Outside of news, a group of prominent U.S. authors, including Jonathan Franzen, John Grisham, George R.R. Martin and Jodi Picoult, sued OpenAI last year, alleging copyright infringement in using their work to train ChatGPT.
But not all news organizations are gearing up for a fight, and some are instead joining forces with AI startups.
On Tuesday, OpenAI announced a partnership with Condé Nast, in which ChatGPT and SearchGPT will display content from Vogue, The New Yorker, Condé Nast Traveler, GQ, Architectural Digest, Vanity Fair, Wired, Bon Appétit and other outlets.
In July, Perplexity AI debuted a revenue-sharing model for publishers following more than a month of plagiarism accusations. Media outlets and content platforms including Fortune, Time, Entrepreneur, The Texas Tribune, Der Spiegel and WordPress.com were the first to join the company’s “Publishers Program.”
OpenAI and Time magazine announced a “multi-year content deal” in June that will allow OpenAI to access current and archived articles from more than 100 years of Time’s history. OpenAI will be able to display Time’s content within its ChatGPT chatbot in response to user questions, according to a press release, and to use Time’s content “to enhance its products,” or, likely, to train its AI models.
OpenAI announced a similar partnership in May with News Corp., allowing OpenAI to access current and archived articles from The Wall Street Journal, MarketWatch, Barron’s, the New York Post and other publications. Reddit also announced in May that it will partner with OpenAI, allowing the company to train its AI models on Reddit content.
A worker delivers Amazon packages in San Francisco on Oct. 24, 2024.
David Paul Morris | Bloomberg | Getty Images
Amazon on Thursday announced Prime members can access new fixed pricing for treatment of conditions like erectile dysfunction and men’s hair loss, its latest effort to compete with other direct-to-consumer marketplaces such as Hims & Hers Health and Ro.
Shares of Hims & Hers fell as much as 17% on Thursday, on pace for its worst day.
Amazon said in a blog post that Prime members can see the cost of a telehealth visit and their desired treatment before they decide to proceed with care for five common issues. Patients can access treatment for anti-aging skin care starting at $10 a month; motion sickness for $2 per use; erectile dysfunction at $19 a month; eyelash growth at $43 a month, and men’s hair loss for $16 a month by using Amazon’s savings benefit Prime Rx at checkout.
Amazon acquired primary care provider One Medical for roughly $3.9 billion in July 2022, and Thursday’s announcement builds on its existing pay-per-visit telehealth offering. Video visits through the service cost $49, and messaging visits cost $29 where available. Users can get treatment for more than 30 common conditions, including sinus infection and pink eye.
Medications filled through Amazon Pharmacy are eligible for discounted pricing and will be delivered to patients’ doors in standard Amazon packaging. Prime members will pay for the consultation and medication, but there are no additional fees, the blog post said.
Amazon has been trying to break into the lucrative health-care sector for years. The company launched its own online pharmacy in 2020 following its acquisition of PillPack in 2018. Amazon introduced, and later shuttered, a telehealth service called Amazon Care, as well as a line of health and wellness devices.
The company has also discontinued a secretive effort to develop an at-home fertility tracker, CNBC reported Wednesday.
Former U.S. Army intelligence analyst Chelsea Manning says censorship is still “a dominant threat,” advocating for a more decentralized internet to help better protect individuals online.
Her comments come amid ongoing tension linked to online safety rules, with some tech executives recently seeking to push back over content moderation concerns.
Speaking to CNBC’s Karen Tso at the Web Summit tech conference in Lisbon, Portugal, on Wednesday, Manning said that one way to ensure online privacy could be “decentralized identification,” which gives individuals the ability to control their own data.
“Censorship is a dominant threat. I think that it is a question of who’s doing the censoring, and what the purpose is — and also censorship in the 21st century is more about whether or not you’re boosted through like an algorithm, and how the fine-tuning of that seems to work,” Manning said.
“I think that social media and the monopolies of social media have sort of gotten us used to the fact that certain things that drive engagement will be attractive,” she added.
“One of the ways that we can sort of countervail that is to go back to the more decentralized and distribute the internet of the early ’90s, but make that available to more people.”
Nym Technologies Chief Security Officer Chelsea Manning at a press conference held with Nym Technologies CEO Harry Halpin in the Media Village to present NymVPN during the second day of Web Summit on November 13, 2024 in Lisbon, Portugal.
Asked how tech companies could make money in such a scenario, Manning said there would have to be “a better social contract” put in place to determine how information is shared and accessed.
“One of the things about distributed or decentralized identification is that through encryption you’re able to sort of check the box yourself, instead of having to depend on the company to provide you with a check box or an accept here, you’re making that decision from a technical perspective,” Manning said.
‘No longer secrecy versus transparency’
Manning, who works as a security consultant at Nym Technologies, a company that specializes in online privacy and security, was convicted of espionage and other charges at a court-martial in 2013 for leaking a trove of secret military files to online media publisher WikiLeaks.
She was sentenced to 35 years in prison, but was later released in 2017, when former U.S. President Barack Obama commuted her sentence.
Asked to what extent the environment has changed for whistleblowers today, Manning said, “We’re at an interesting time because information is everywhere. We have more information than ever.”
She added, “Countries and governments no longer seem to invest the same amount of time and effort in hiding information and keeping secrets. What countries seem to be doing now is they seem to be spending more time and energy spreading misinformation and disinformation.”
Manning said the challenge for whistleblowers now is to sort through the information to understand what is verifiable and authentic.
“It’s no longer secrecy versus transparency,” she added.
LISBON, Portugal — British online lender Zopa is on track to double profits and increase annual revenue by more than a third this year amid bumper demand for its banking services, the company’s CEO told CNBC.
Zopa posted revenues of £222 million ($281.7 million) in 2023 and is expecting to cross the £300 million revenue milestone this year — that would mark a 35% annual jump.
The 2024 estimates are based on unaudited internal figures.
The firm also says it is on track to increase pre-tax profits twofold in 2024, after hitting £15.8 million last year.
Zopa, a regulated bank that is backed by Japanese giant SoftBank, has plans to venture into the world of current accounts next year as it looks to focus more on new products.
The company currently offers credit cards, personal loans and savings accounts that it offers through a mobile app — similar to other digital banks such as Monzo and Revolut which don’t operate physical branches.
“The business is doing really well. In 2024, we’ve hit or exceeded the plans across all metrics,” CEO Jaidev Janardana told CNBC in an interview Wednesday.
He said the strong performance is coming off the back of gradually improving sentiment in the U.K. economy, where Zopa operates exclusively.
Commenting on Britain’s macroeconomic conditions, Janardana said, “While it has been a rough few years, in terms of consumers, they have continued to feel the pain slightly less this year than last year.”
The market is “still tight,” he noted, adding that fintech offerings such as Zopa’s — which typically provide higher savings rates than high-street banks — become “more important” during such times.
“The proposition has become more relevant, and while it’s tight for customers, we have had to be much more constrained in terms of who we can lend to,” he said, adding that Zopa has still been able to grow despite that.
A big priority for the business going forward is product, Janardana said. The firm is developing a current account product which would allow users to spend and manage their money more easily, in a similar fashion to mainstream banking providers like HSBC and Barclays, as well as fintech upstarts such as Monzo.
“We believe that there is more that the consumer can have in the current account space,” Janardana said. “We expect that we will launch our current account with the general public sometime next year.”
Janardana said consumers can expect a “slick” experience from Zopa’s current account offering, including the ability to view and manage multiple account bank accounts from one interface and access to competitive savings rates.
IPO ‘not top of mind’
Zopa is one of many fintech companies that has been viewed as a potential IPO candidate. Around two years ago, the firm said that it was planning to go public, but later decided to put those plans on ice, as high interest rates battered technology stocks and the IPO market froze over in 2022.
Janardana said he doesn’t envision a public listing as an immediate priority, but noted he sees signs pointing toward a more favorable U.S. IPO market next year.
That should mean that Europe becomes more open to IPOs happening later in 2026, according to Janardana. He didn’t disclose where Zopa would end up going public.
“To be honest, it’s not the top of mind for me,” Janardana told CNBC. “I think we continue to be lucky to have supportive and long-term shareholders who support future growth as well.”
Last year, Zopa made two senior hires, appointing Peter Donlon, ex-chief technology officer at online card retailer Moonpig, as its own CTO. The firm also hired Kate Erb, a chartered accountant from KPMG, as its chief operating officer.
The company raised $300 million in a funding round led by Japanese tech investor SoftBank in 2021 and was last valued by investors at $1 billion.