A group of authors led by John Carreyrou, the Pulitzer Prize-winning writer behind "Bad Blood", has launched a fresh legal challenge against six major AI companies, accusing them of building large language models on pirated books without permission or payment. The lawsuit, filed in the Northern District of California in December 2025, names Anthropic, OpenAI, Google, Meta, xAI and Perplexity and claims the firms relied on material taken from shadow libraries including LibGen, Z-Library and OceanofPDF.

The plaintiffs say they are not interested in a modest payout per title, but in damages that reflect the scale of the alleged copying. According to the complaint, each defendant could owe $150,000 per work, which would push potential damages to $900,000 for a single book across all six companies. That figure is being used to argue that the dispute is not about a technical copyright lapse, but about what the authors describe as a wholesale extraction of value from their work.

The case builds on a key ruling in June 2025 by U.S. District Judge William Alsup in the Bartz v. Anthropic litigation. TechCrunch reported that Alsup held training on legally acquired books could qualify as fair use, but the judge drew a sharper line around material downloaded from pirate sources. That distinction matters here, because the new plaintiffs are leaning on the argument that fair use cannot excuse the use of books that were obtained unlawfully in the first place.

Their complaint also reflects growing frustration with the proposed $1.5 billion Anthropic settlement, which works out at roughly $3,000 per title for about 500,000 books. The authors say that amount amounts to only a small fraction of the Copyright Act’s statutory ceiling and falls far short of what they believe the law allows. In a separate development, the Authors Guild has praised the settlement for those who remain in the class, while the opt-out plaintiffs have chosen to press ahead with their own claims.

The lawsuit arrives as AI copyright battles broaden well beyond books. Reuters and other outlets have reported that music publishers sued Anthropic in January 2026, seeking more than $3 billion over alleged lyric piracy, while the New York Times continues its case against OpenAI. With evidence from the Anthropic litigation now being cited in other disputes, legal experts say the industry is entering a more confrontational phase in which the use of copyrighted material for AI training is likely to be tested case by case, and at much greater scale.

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Source: Noah Wire Services