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Apple Faces Lawsuit Over Alleged Use of Copyrighted Books to Train Apple Intelligence

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Apple has been sued in a California federal court by two neuroscientists who claim the company used pirated versions of their books to train its new artificial intelligence system, Apple Intelligence.

Professors Susana Martinez-Conde and Stephen Macknik of SUNY Downstate Health Sciences University in Brooklyn filed a proposed class-action lawsuit on Thursday, accusing Apple of relying on “shadow libraries” — online repositories of illegally copied books — to build its AI training datasets.

The lawsuit alleges that Apple used thousands of copyrighted works, including the professors’ books Champions of Illusion and Sleights of Mind, without permission. According to the complaint, Apple’s use of such data contributed to a massive surge in its market value the day after Apple Intelligence was unveiled, calling it “the single most lucrative day in the history of the company.”

The case adds Apple to a growing list of major tech firms — including OpenAI, Microsoft, and Meta — facing lawsuits from authors, musicians, and media organizations over the unauthorized use of copyrighted content in AI training. In August, AI firm Anthropic settled a similar case for $1.5 billion.

Apple has not yet commented on the lawsuit. Apple Intelligence, introduced earlier this year, is the company’s suite of AI-powered features for iPhone, iPad, and Mac devices.

OpenAI and Anthropic may use investor funds to settle AI copyright lawsuits – FT

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OpenAI and Anthropic are reportedly considering using investor funds to help cover potential multibillion-dollar settlements linked to ongoing AI copyright lawsuits, according to the Financial Times. Several lawsuits filed by authors, publishers, and media companies accuse major tech firms — including OpenAI, Microsoft, and Meta — of using copyrighted materials without permission to train their AI models.

The report said OpenAI has arranged insurance coverage of up to $300 million through Aon for emerging AI-related risks, though some sources claimed the actual figure is “significantly lower.” Experts said such coverage is still far short of the amount needed to offset massive legal liabilities.

Aon’s head of cyber risk, Kevin Kalinich, told the FT that the insurance industry currently lacks “enough capacity” to adequately protect AI model providers. As a result, OpenAI has discussed self-insurance options, including setting up a captive fund to ringfence investor capital against potential future claims.

Anthropic, meanwhile, is also using internal funds to prepare for possible settlements. Last month, a U.S. federal judge preliminarily approved a $1.5 billion class-action settlement involving authors’ copyright claims against Anthropic.

Neither company has publicly commented on the report, and Reuters could not independently verify the details. The cases highlight the growing legal and financial challenges facing leading AI developers as governments and creators push back on data use practices.

Google Pledges $1 Billion for AI Training at U.S. Universities

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Alphabet’s Google (GOOGL.O) announced a $1 billion, three-year commitment to support artificial intelligence training and tools at U.S. higher education institutions and nonprofits. Over 100 universities, including major public systems like Texas A&M and the University of North Carolina, have joined the initiative so far.

The program will provide participating schools with cash funding and resources such as cloud computing credits to facilitate AI training for students and research projects in AI-related fields. The $1 billion figure also includes the value of paid AI tools, including an advanced version of Google’s Gemini chatbot, offered free to college students.

Google aims to expand the program to every accredited nonprofit college across the U.S. and is exploring similar initiatives internationally, said Senior Vice President James Manyika. However, he did not disclose how much of the commitment represents direct funding versus cloud credits and software licenses.

This move follows similar efforts by AI competitors like OpenAI, Anthropic, Amazon, and Microsoft, the latter having pledged $4 billion to boost AI education globally. By introducing their AI tools to students early, tech companies hope to foster long-term adoption as these students join the workforce.

Despite some concerns around AI’s impact on education, including issues like academic dishonesty and critical thinking erosion, Manyika said Google has encountered little resistance from university administrators but expects ongoing discussions about best practices.

“We’re hoping to learn together with these institutions about how best to use these tools,” he said, emphasizing the initiative’s collaborative nature and potential to influence future AI product development.