Technology

Apple Faces Lawsuit Over AI Training Data From Authors

A new class-action lawsuit alleges the tech giant used copyrighted books without permission to train its artificial intelligence models.

Apple Inc. has been named in a proposed class-action lawsuit filed by authors who allege the technology giant unlawfully used their copyrighted works to train its artificial intelligence systems. The suit, filed in federal court in Northern California, adds Apple to a growing list of major tech companies facing legal challenges over the data used to power generative AI.

The complaint, brought by authors Grady Hendrix and Jennifer Roberson, claims that their books were part of a massive dataset of pirated material used to develop Apple's "OpenELM" large language models. The authors contend that , infringing on their intellectual property rights to build a commercial AI product.

This legal action highlights the significant legal and financial risks for companies competing in the AI arms race. The lawsuit comes on the heels of a major settlement involving AI startup Anthropic, which agreed to a $1.5 billion payout to a group of authors over similar claims of copyright infringement in the development of its Claude chatbot. That settlement has been described by legal experts as the largest publicly reported copyright settlement to date and sets a potentially costly precedent.

The core of the issue for Apple and its peers is the provenance of the vast amounts of text required to train large language models. While some firms have proactively struck licensing deals with publishers, many are now facing accusations of leveraging pirated datasets to accelerate their AI development. This underscores the escalating tension between content creators and AI developers.

For investors, this trend represents a new and material risk factor for companies heavily invested in artificial intelligence. The outcome of these legal battles could reshape the economics of AI development, potentially forcing companies like Apple to incur significant costs for data licensing and legal settlements. As the legal landscape for AI continues to evolve, the resolution of copyright disputes will be a critical factor in determining the long-term profitability and viability of current AI strategies across the technology sector. against technology firms over intellectual property in the age of AI.