Story
Sony and Warner Music Sue AI Firm Anthropic Over Alleged Song Lyric Infringement

The music publishing divisions of Sony Music and Warner Music have filed a lawsuit against artificial intelligence company Anthropic, alleging the firm engaged in mass copyright infringement by using their song compositions to train its Claude AI models.
The complaint, filed in a California federal court on Friday, claims Anthropic illegally copied and distributed vast amounts of copyrighted material, including lyrics from hundreds of artists such as The Beatles, Taylor Swift, and Michael Jackson.
Details of the Allegations
According to the court filing, Anthropic allegedly "pirated" hundreds of song lyrics and sheet music to develop Claude's ability to respond to human prompts. The publishers assert that the AI model can reproduce their copyrighted lyrics "verbatim" and can also generate new lyrics that directly compete with their original works, creating harmful market substitutes.
The lawsuit further alleges that Anthropic knowingly used illegally sourced materials, including those from torrent downloads, for its training data. "Anthropic clearly considers that to be just the cost of doing business given that its entire business model continues to be built on copyright theft," the complaint states.
Financial Stakes and Industry Context
AdThe music labels are seeking significant financial damages, requesting up to $150,000 for each infringed copyright, and a court order to prevent Anthropic from continuing to use their works. The lawsuit highlights a previous $1.5 billion settlement Anthropic paid to resolve a class-action suit from authors, arguing the amount was not a sufficient deterrent.
"And $1.5 billion is obviously not a large enough settlement to deter infringing conduct by a company that has parlayed such mass infringement into a staggering $2-trillion-dollar valuation," the complaint alleges.
A Widening Legal Battlefront for AI
This case is the latest in a wave of litigation brought by copyright holders against AI companies over the use of protected works in training large language models. For investors, these lawsuits represent a significant and growing legal risk for the AI sector, potentially impacting valuations and operational costs.
Anthropic is already facing a similar lawsuit filed by Universal Music Group in 2023, which is still ongoing. The outcome of these cases could set crucial precedents for how AI developers are required to license data, fundamentally altering the economics of building and training generative AI systems.
Read next
More on Stocks
FTC Orders Walmart, Uber, Delta to Disclose Data on Personalized Pricing
The U.S. Federal Trade Commission is demanding nine major companies, including leading retail, travel, and gig economy firms, to provide information on how they use consumer data for setting individual prices and wages.

Google Launches Gemini 4 Carbon AI Model to Bolster Cybersecurity Capabilities
Alphabet's Google has unveiled Gemini 4 Carbon, its latest AI model specifically designed for advanced cybersecurity tasks like vulnerability detection and secure code generation. The launch escalates competition with rivals OpenAI and Anthropic in the enterprise AI market.

Oracle Shares Surge After Unveiling $225 Billion Revenue Target for 2030
Oracle stock rose sharply after the company presented a long-term financial outlook targeting at least $225 billion in annual revenue by fiscal 2030, driven by its expanding AI infrastructure business.

DOJ Scrutinizes Nvidia's $12.9B Hugging Face Deal Amid Broader Antitrust Probe, Sources Say
The U.S. Department of Justice is reportedly examining Nvidia's planned $12.93 billion acquisition of AI platform Hugging Face as part of a wider, ongoing antitrust investigation into the chipmaker's market conduct.