Anthropic wins fair use victory for AI – but still in trouble for stealing books

> Then, its service providers stripped the books from their bindings, cut their pages to size, and scanned the books into digital form — discarding the paper originals.

This is basically the plot to Vinge's Rainbows End, AI and all.

Is that the one where the books were shredded and the shreds scanned, being reconstructed from the shreds as part of the process?

Yes