July 19, 2025

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Anthropic, Amazon & Google Face Copyright Lawsuit; Nvidia Bubble?

Several key developments are shaping the AI landscape. In the legal arena, authors have been granted the ability to collectively sue Anthropic for allegedly using copyrighted books, sourced from pirate libraries like LibGen and PiLiMi, to train its Claude AI chatbot. The lawsuit claims potential damages in the billions and raises questions about fair use and AI data sourcing. Anthropic, backed by Amazon and Google, faces increasing legal pressure as the case proceeds as a single action. Meanwhile, a Senate hearing addressed concerns about AI companies using copyrighted material, with Senator Josh Hawley criticizing Big Tech for intellectual property theft. In economic news, Apollo Global Management's chief economist, Torsten Sl\u00f8k, warns that AI stocks, including Nvidia, Microsoft, and Apple, may be in a bubble similar to the late 1990s dot-com era, with price-to-earnings ratios exceeding those levels. BTIG analysts share this sentiment, suggesting investors consider more defensive sectors. Technologically, the rise of AI is changing how information spreads online, requiring a new web business model. Google now uses AI-generated summaries in search results. Anthropic has also quietly tightened usage limits for Claude Code, impacting heavy users on its Max plan. The AI industry is grappling with a 'Safety-Velocity Paradox,' balancing rapid progress with safety, as highlighted by a researcher's criticism of xAI. Amazon is addressing cost management in generative AI systems with Amazon Bedrock's application inference profiles, enabling detailed cost tracking. AI is also finding practical applications in unexpected areas, such as helping the threatened California red-legged frog make a comeback by using AI to monitor their mating calls. However, AI's limitations are also apparent, as human expertise remains essential in areas like grocery ordering, where AI cannot account for factors like weather or local events. Finally, the Longview Cyber Summit addressed the threat of AI-generated security scams and how to combat them using AI.

Key Takeaways

  • Authors can collectively sue Anthropic for copyright infringement related to using copyrighted books to train its Claude AI chatbot.
  • Anthropic potentially downloaded up to 7 million books from pirate libraries like LibGen and PiLiMi, leading to a class-action lawsuit.
  • Economist Torsten Sl\u00f8k warns that AI stocks like Nvidia, Microsoft, and Apple may be in a bubble, similar to the late 1990s tech bubble.
  • Google is using AI-generated summaries in search results, impacting the traditional web business model.
  • Anthropic has quietly tightened usage limits for Claude Code, causing issues for heavy users.
  • The AI industry faces a 'Safety-Velocity Paradox,' balancing the need for rapid progress with the moral need for caution.
  • Amazon Bedrock's application inference profiles enable detailed cost tracking for generative AI systems.
  • AI is being used to monitor the mating calls of the endangered California red-legged frog.
  • Human expertise remains essential in areas like grocery ordering, where AI cannot account for all relevant factors.
  • The Longview Cyber Summit addressed the threat of AI-generated security scams and how to combat them using AI.

Senate Discusses AI Copyright Issues with Big Tech Companies

A Senate hearing on July 16, 2025, addressed concerns about AI companies using copyrighted material to train their large language models. Senator Josh Hawley criticized Big Tech for intellectual property theft, while witnesses debated whether AI training methods violate fair use. Some argued that AI companies benefit from using content without payment, while others cautioned against hindering U.S. competition with China. The discussion highlighted the need to balance innovation with copyright protection, especially regarding the use of pirated content like Lib Gen.

Authors Can Sue Anthropic Together in AI Copyright Case

A judge ruled that authors suing Anthropic for copyright infringement can represent all U.S. writers. The lawsuit claims Anthropic illegally used books from pirate libraries like LibGen and PiLiMi to train its AI system. Anthropic may have downloaded up to 7 million books, potentially owing billions in damages. The company is considering challenging the ruling, while the authors argue their copyrighted books were used without permission to teach Anthropic's Claude chatbot.

Judge OKs Class Action Against Anthropic for AI Copyright Use

A federal judge approved a class-action lawsuit against Anthropic, an AI startup, for allegedly using copyrighted works to train its Claude AI. Three authors can represent thousands of U.S. writers whose works were used without permission. The lawsuit accuses Anthropic of using pirated books to train its AI models, raising questions about AI data sourcing. Anthropic, backed by Amazon and Google, claims its AI training is fair use, but the class-action status increases the stakes and could lead to significant damages.

Authors Unite to Sue Anthropic Over AI Book Use

A U.S. judge has allowed authors to jointly sue Anthropic, an AI company, for using their copyrighted books to train its Claude chatbot without permission. The authors claim Anthropic's AI mimics their styles and ideas, which is copyright infringement. The judge stated the case will proceed as a single action, increasing legal pressure on AI developers. This lawsuit is part of a trend where artists are challenging AI companies' unauthorized use of their work.

Economist Warns AI Stocks in Bubble Trouble Like 1999

Economist Torsten Sløk warns that the AI-driven tech market may crash, similar to the dot-com bubble of the late 1990s. Stocks like Nvidia, Microsoft, and Apple may be overvalued. The article explores the dangers of high expectations and what it means for investors.

Top Economist Says AI Mania Worse Than 1999 Tech Bubble

Apollo Global Management's chief economist, Torsten Sløk, warns that AI stocks are overvalued, comparing it to the late 1990s tech bubble. He notes that the price-to-earnings ratios of the S&P 500's top 10 companies, including AI stocks like Meta and Nvidia, exceed 1999 levels. BTIG analysts also see market sentiment as 'frothy,' suggesting a possible pullback. Both firms suggest investors consider more defensive sectors.

New Web Business Model Needed to Survive AI Age

Artificial intelligence is changing how information spreads online, as people increasingly use chatbots instead of search engines. Google now adds AI-generated summaries to search results, letting users have Google do the Googling. This shift affects the internet's central bargain and calls for a new business model to support the web.

Anthropic Limits Claude Code Use Without Telling Users

Anthropic has quietly tightened usage limits for Claude Code, causing problems for heavy users, especially those on the $200-a-month Max plan. Users are seeing messages saying they've reached their limit, but Anthropic hasn't announced any changes. An Anthropic representative confirmed the issues but didn't provide details. Users are confused because the pricing system doesn't guarantee a set level of access, making it hard to plan around usage limits.

AI Race: Can Speed and Safety Coexist?

An AI researcher criticized xAI for launching a model without proper safety evaluations, highlighting the industry's struggle between speed and safety. A former OpenAI engineer noted that much safety work isn't published due to the pressure to compete. The AI industry faces a 'Safety-Velocity Paradox,' balancing the need for rapid progress with the moral need for caution. The creation of OpenAI's coding agent, , shows the human cost of prioritizing speed over methodical safety research.

Manage Amazon Bedrock Costs with Application Inference Profiles

Generative AI systems need to balance scalability and cost management, especially in multi-tenant setups. Traditional cost tracking struggles with diverse customer usage patterns. Amazon Bedrock's application inference profiles enable detailed cost tracking by associating metadata with each request. This allows for accurate cost allocation and helps manage resources effectively across different tenants. A solution overview demonstrates how to use these profiles with Amazon SNS and to create tenant-specific dashboards.

AI Ordering Still Needs Human Knowledge in Grocery

AI can help with grocery ordering, but human produce managers are still needed to apply common sense. While AI can suggest order quantities based on past data, it doesn't account for factors like weather, crop changes, or local events. A produce manager's knowledge is crucial for accurate ordering and preventing shortages or excess inventory. AI is a useful tool, but human expertise remains essential in the grocery business.

Cyber Summit Discusses AI and Security Concerns

Andrew Culver spoke with Brazos Wortham about artificial intelligence at the Longview Cyber Summit. They discussed the progressive nature of AI, the threat of AI-generated security scams, and how to combat these scams using AI.

AI Helps Threatened Frog Make a Comeback

Scientists are using AI to help the California red-legged frog, which is under the Endangered Species Act. Conservationists moved a population of these frogs from Mexico to California. To monitor the frogs' growth, scientists use AI to listen for their distinctive mating calls. The AI models sort through recordings and identify where the frogs were heard, saving time and money for the conservation team.

Sources

AI Copyright Large Language Models Intellectual Property Fair Use Anthropic Claude LibGen PiLiMi Class Action Lawsuit AI Training Data Data Sourcing Amazon Bedrock Cost Management Application Inference Profiles AI Stocks Tech Bubble Overvalued Stocks Market Crash Nvidia Microsoft Apple Meta AI-Generated Content Search Engines Web Business Model Usage Limits AI Safety xAI OpenAI AI Ethics Scalability Cost Tracking Grocery Ordering Human Expertise Cyber Security AI Scams Endangered Species Conservation California Red-Legged Frog AI Monitoring Mating Calls