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Anthropic Lands Partial Victory in AI Copyright Case
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What's up: Nvidia's cloud computing move; falling in love with AI.
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Good morning. Large language models are people too.
That could be one takeaway from a recent ruling concerning Anthropic’s use of books to train its artificial-intelligence models.
On Monday Judge William Alsup of the Northern District of California ruled that the startup's use of books to train its AI models was legal under U.S. copyright law, but only if it had purchased those books.
“The court treats the AI as akin to a human learning from copyrighted material,” Christina Frohock, professor of legal writing at the University of Miami School of Law, tells Meg Tanaka, a member of this summer's intern class at WSJ.
The ruling could have broad implications for AI and intellectual property, an area that has attracted its share of lawsuits.
But it won't answer everything.
Monday's ruling doesn’t apply to the more than seven million books that Anthropic obtained through “pirated” means. For that, the company will face another trial. Read the story.
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Content from our sponsor: Deloitte |
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Government Trends 2025: Enhancing Delivery in 9 Areas |
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Governments around the globe are addressing contemporary challenges and enhancing public services through the strategic use of technology, innovation, and collaboration, according to a new report. Read More
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An Nvidia GPU server rack for AI. Photo: Annabelle Chih/Bloomberg News
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DGX Cloud, Nvidia's budding AI cloud service, has yet to make an enormous dent in the market, but it's early days yet, says WSJ Heard on the Street's Asa Fitch. Thanks to Nvidia's power as the sector’s principal arms dealer, legacy cloud companies are helping the chip maker make inroads into their business.
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Under DGX Cloud’s unusual arrangement, the cloud giants buy and manage equipment—including Nvidia’s chips—that forms the backbone of the service. Then Nvidia leases back that equipment from them and rents it out to corporate clients. It also offers access to its AI experts and software as part of the package.
That has left cloud-computing giants in an uncomfortable position. While they make money through the arrangement, they are also being asked to help a service that could compete with them.
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Amazon’s next-generation build is taking shape in Indiana, a massive facility that will consume 2.2 gigawatts of electricity, mostly for the benefit of one customer, AI-startup Anthropic. The New York Times tours the complex, expected to house some 30 data centers, and part of a larger infrastructure effort Amazon calls Project Rainier.
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The U.K. government plans to invest more than $681 million in quantum computing over the next four years, looking to boost leadership in a sector expected to be critical for scientific discovery as well as cybersecurity, FT reports.
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ChatGPT’s success in the consumer space is helping OpenAI gain traction in the enterprise, sometimes at the expense of partner Microsoft which is selling its own AI assistant. Some Microsoft salespeople, “describe being caught flatfooted” by OpenAI's success, according to Bloomberg.
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Alphabet’s Waymo kicked off a new robotaxi service in Atlanta, CNBC reports, with riders calling up rides through the Uber app. The two companies already have a similar setup in Austin, which launched in March.
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BlackBerry raised its sales guidance for the fiscal year after logging higher-than-expected revenue in its latest quarter, WSJ reports. The security-software company on Tuesday said it now expects revenue of $508 million to $538 million for fiscal 2026, up from its prior guidance of $504 million to $534 million.
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Illustration: Michele Marconi
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How healthy is it for people to have close friends or romantic partners who are AI?
The Wall Street Journal hosted a videoconference with three experts offering differing views on this question: Nina Vasan, psychiatrist and founder of Brainstorm: The Stanford Lab for Mental Health Innovation; Julian De Freitas, assistant professor of business administration in the marketing unit at Harvard Business School; and Shannon Vallor, philosophy professor at the University of Edinburgh and author of “The AI Mirror.”
An excerpt of the conversation is below. Read more.
WSJ: Do you think increasingly, men and women will use AI for true deep friendships and even romantic relationships?
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Shannon Vallor. Photo: University of Edinburgh
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No, because true deep friendships and romantic relationships are not possible with AI; relationships of these kinds are a two-way bond that requires more than one party to be aware of it. A “large language model” [the deep-learning AI that understands human language] has no awareness of anything at all.
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Julian De Freitas. Photo: Harvard University
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I think they will. In our research, we’ve seen that highly engaged users of a leading AI companion report feeling closer to their virtual partner than to almost any real-life relationship—including close friends—ranking only family members above it.
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Dr. Nina Vasan. Photo: Stanford University
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Yes, absolutely. Not because AI is truly capable of friendship or love, but because we are. Humans are wired to bond, and when we feel seen and soothed—even by a machine—we connect. Think about existing machines like robot dogs that offer comfort and companionship, for example.
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Everything Else You Need to Know
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A preliminary intelligence report found that the U.S. military’s strikes last weekend on three Iranian nuclear facilities only set back Tehran’s nuclear ambitions by a few months. (WSJ)
Zohran Mamdani was poised to deliver a stunning upset in New York City’s mayoral primary that pitted youthful enthusiasm against Andrew Cuomo’s billionaire backers, union endorsements and old-guard Democratic support. (WSJ)
Federal Reserve Chair Jerome Powell told lawmakers on Tuesday that recent economic data would have likely justified continuing to lower interest rates if not for concerns that higher tariffs might derail the central bank’s yearslong fight to defeat inflation. (WSJ)
Federal investigators said Boeing’s failure to provide adequate training, guidance and oversight for its manufacturing operations was to blame for the door plug that flew off a Boeing 737 MAX plane last year. (WSJ)
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