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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.

Apple Faces Shareholder Lawsuit Over Alleged Overstatement of AI Progress

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Apple (AAPL.O) was sued on Friday by shareholders in a proposed securities fraud class action accusing the company of overstating its progress in integrating advanced artificial intelligence into its Siri voice assistant. The lawsuit claims this misrepresentation negatively impacted iPhone sales and Apple’s stock price.

The complaint covers shareholders who experienced significant losses, potentially amounting to hundreds of billions of dollars, over the year ending June 9, 2025. During that period, Apple introduced several product features and aesthetic upgrades but kept AI advancements modest.

Apple has not yet responded to requests for comment. The lawsuit names CEO Tim Cook, Chief Financial Officer Kevan Parekh, and former CFO Luca Maestri as defendants. The case was filed in the U.S. District Court for the Northern District of California in San Francisco.

Shareholders, led by Eric Tucker, argue that at Apple’s Worldwide Developers Conference in June 2024, the company implied that AI would play a major role in the iPhone 16. Apple launched “Apple Intelligence,” which was marketed as enhancing Siri’s power and user-friendliness. However, the plaintiffs contend that Apple did not have a functional prototype of AI-based Siri features and could not reasonably expect those features to be ready for the iPhone 16 launch.

The lawsuit states that the reality started to become apparent on March 7, 2025, when Apple announced delays to some Siri upgrades until 2026. This was further reinforced at the June 9 Worldwide Developers Conference when analysts expressed disappointment with Apple’s AI progress.

Since hitting a record high on December 26, 2024, Apple shares have fallen nearly 25%, erasing roughly $900 billion in market value.

The case is identified as Tucker v. Apple Inc et al, U.S. District Court, Northern District of California, No. 25-05197.

Apple Opens Apple Intelligence to Developers, Keeps AI Rollout Cautious at WWDC

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At its annual Worldwide Developers Conference (WWDC), Apple unveiled a series of incremental artificial intelligence updates, emphasizing practical features while keeping broader ambitions restrained compared to its tech rivals. The company announced that developers will now gain access to Apple Intelligence’s foundational on-device AI model, though cloud-based advanced capabilities remain out of reach.

Apple’s software chief Craig Federighi confirmed that third-party developers can integrate Apple’s on-device large language model (LLM), which operates at around 3 billion parameters. While this allows for enhanced privacy and offline functionality, it also limits the model’s capacity for more complex AI tasks that cloud-based systems can handle. Apple plans to supplement these with integrations from partners like OpenAI, allowing developers to use both Apple’s and OpenAI’s code completion tools directly within Apple’s developer platform, Xcode.

The updates reflect a shift from the sweeping promises made a year ago. Last year, Apple hinted at being a visionary in AI with talk of “AI agents.” This year, the company focused on concrete applications such as live translation during phone calls, call screening, and visual intelligence that helps users find products similar to those viewed online.

Federighi also announced a major design refresh across Apple’s operating systems, introducing a “Liquid Glass” aesthetic with semi-transparent icons and menus inspired by visionOS. Future OS versions will adopt year-based naming, replacing sequential version numbers.

While the AI additions may appear modest, Apple’s back-end infrastructure improvements suggest a longer-term strategy. The company prioritizes privacy-focused, on-device AI processing while allowing users to opt in when data is shared with third parties like OpenAI.

Despite these moves, analysts expressed mixed views. Some highlighted Apple’s cautious but practical approach, while others warned that Apple risks falling behind as competitors like OpenAI and Microsoft rapidly advance in AI development. Apple’s shares dipped 1.2% following the announcements.

In the broader context, OpenAI reported reaching a $10 billion annualized revenue run rate, underscoring the fast-paced evolution of the AI sector that Apple is cautiously navigating.