Anthropic didn't violate U.S. copyright law when the AI company used millions of legally purchased books to train its chatbot, judge rules.

While the startup has won its "fair use" argument, it potentially faces billions of dollars in damages for allegedly pirating over 7 million books to build a digital library.

In a test case for the artificial intelligence industry, a federal judge has ruled that AI company Anthropic didn’t break the law by training its chatbot Claude on millions of copyrighted books. But the company is still on the hook and must now go to trial over how it acquired those books by downloading them from online “shadow libraries” of