Business Impacts of Anthropic's $1.5 Billion Copyright

**Jayden** (0:00)
If you want to get access to this episode and my next 30 episodes, all ad free, so there'll be no ads on them, go check out my podcast AI Chat. You can go search for that on Spotify or Apple. It's AI Chat. I'm gonna post all of these news episodes, and I'm also posting interviews, like I just interviewed the CEO of Cohere. They've raised over a billion dollars for their AI model, talking about what they're gonna be spending the money on and the direction of the AI industry, along with all of this new stuff. So if you wanna go check it out with no ads for free, it is AI Chat.

**SPEAKER_2** (0:28)
Welcome back to the podcast. We have big news today regarding the Anthropic settlement with authors. So a judge has approved a $1.5 billion settlement, which is crazy news, especially. And I would say good news for those of us who create content and write things, create things.
The data was scraped from Anthropic without the author's approval or without them purchasing the actual material. So that's where we're going to get all into the copyright and fair use questions with AI today. Before we do that, Jayden, will you tell them about our school community?

**Jayden** (1:06)
Yes. Every week, we post a bonus live stream where we break down how we're growing and scaling our businesses using AI tools. And this week, we did a really cool video where we actually showed how Jamie and I both have set up directory websites. So these are websites that show, for me, I have one called podcaststudio.com, and it's every podcast studio in America. It's a directory website. Jamie has just started one for bins that do liquidation bins. So anyways, there's a lot of opportunities to make money, whether you do rank and rent or whether you're doing just like an Airbnb style for any niche industry. We break down how we are able to set those up, all of our strategies in the school community, if you want to see that. We also have over a hundred videos that we've recorded over the last couple of years that break down all of the AI tools, all of the AI strategies, all of the revenue numbers, all of the stuff we don't share publicly. It's all on the school community, and it is free to join. You get five of these bonus videos for free of the hundred.
It's $19 a month if you want to get the full library, but it's free to join for the rest of the month, and we have over 500 members. So we'd love for you to go check it out. It won't be free forever, but if you've ever been interested in joining, I would say go check it out. Now would be the time to do it.
Okay, let's get in what's going on with Anthropic. I'm really excited about this story for a number of different reasons. We've been seeing this, this story's been going on for a long time, but it feels like the final approval has just happened. This, by the way, is the largest copyright payout in US history.
And it's interesting because I think, honestly, it's a win for AI companies, and it's a win for, sure, the people that got, that are gonna get a payout from this. I don't think the payouts are massive, by the way, because I have a friend, Connor Grannon. He is an author in New York Times Bestseller of a book called, I think, Little Princes. And his book is, was included in this original issue, which basically, the original issue is that Anthropic went, and they scraped every book that exists. And not just scraped it, they actually used, they basically used the quote unquote dark web or whatever, but they really just used a pirating site to go download every book. There's a giant data set of every book. And they used that in one of the earlier models of Claude. Now, if you remember Claude in the early days, I remember this. Using Claude versus ChatGPT, Claude just had a way better voice, way better tone, it was way better for writing. All the authors I knew ironically were telling me, I love Claude, it sounds so much more realistic, so much better. And the reason was because they pirated every book in the world. So because of that particular thing and the fact that they pirated them all, that's why they're paying this $1.5 billion.
What's interesting that happens in this lawsuit, though, is that after they pirated them all, Anthropic went and actually purchased physical copies of millions of books, and they used a robot to rip the cover off the book, and then open the book up, flip the page, scan it, flip the page, scan it, flip the page, scan it. And they manually had like basically a robot scan every page of every book that they had physically purchased, and that data set is allowed. So in this lawsuit, basically, you can't go pirate the PDFs and everything, but if you go buy a physical book and you go scan it in yourself, you can use it in the data set because it would be the same as if I was, you know, just a random person that was like, hey, I want to learn about physics. I went and bought a physics book, and then I wrote an article about it. Like, yes, I'm using my source material from this physics textbook, but I'm changing. I'm adding my own, you know, thing to it. So anyways, that's where this lawsuit is at right now. I'm really excited to see where this goes.