Claude maker Anthropic's use of copyright-protected books in its AI training process was "exceedingly transformative" and fair use, US senior district judge William Alsup ruled on Monday. It's the first time a judge has decided in favor of an AI company on the issue of fair use,

In a test case for the artificial intelligence industry, a federal judge has ruled that AI company Anthropic didn’t break the law by training its chatbot Claude on millions of copyrighted books.

While the startup has won its “fair use” argument, it potentially faces billions of dollars in damages for allegedly pirating over 7 million books to build a digital library.