A federal judge has approved a $1.5 billion copyright settlement involving Anthropic, marking a major development in the growing legal fight over how artificial intelligence systems are trained. The case centers on the company’s use of pirated books in building its Claude chatbot.

Under the agreement, Anthropic will pay thousands of authors roughly $3,000 for each book involved. The settlement addresses claims tied to unauthorized copies that were allegedly used as training material for the AI model.

The ruling highlights one of the biggest questions facing the AI industry: whether companies can use copyrighted content without permission when developing powerful chatbot systems. Authors, publishers and technology companies have been increasingly at odds as generative AI tools expand and rely on vast libraries of written material.

With the deal now approved, the Anthropic case stands out as a significant example of how courts and companies may begin resolving copyright disputes tied to AI training data. It also adds pressure on the broader tech sector to clarify how books and other protected works are obtained and used in the race to build advanced AI products.