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Anthropic agrees to pay $1.5B to settle lawsuit with book authors

(www.nytimes.com)
989 points acomjean | 1 comments | 05 Sep 25 19:52 UTC | HN request time: 0.201s | source
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arjunchint ◴[05 Sep 25 20:49 UTC] No.45143425[source]▶
Wait so they raised all that money just to give it to publishers?

Can only imagine the pitch, yes please give us billions of dollars. We are going to make a huge investment like paying of our lawsuits.

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Wowfunhappy ◴[05 Sep 25 20:53 UTC] No.45143457[source]▶
From the article:

> Although the payment is enormous, it is small compared with the amount of money that Anthropic has raised in recent years. This month, the start-up announced that it had agreed to a deal that brings an additional $13 billion into Anthropic’s coffers. The start-up has raised a total of more than $27 billion since its founding in 2021.

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slg ◴[05 Sep 25 21:20 UTC] No.45143756[source]▶
Maybe small compared to the money raised, but it is in fact enormous compared to the money earned. Their revenue was under $1b last year and they projected themselves as likely to make $2b this year. This payout equals their average yearly revenue of the last two years.
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masterjack ◴[05 Sep 25 21:32 UTC] No.45143873[source]▶
I thought they were projecting 10B and said a few months ago they have already grown from a 1B to 4B run rate
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1. stingraycharles ◴[06 Sep 25 00:55 UTC] No.45145542[source]▶
But what are the profits? 1.5B is a huge amount, no matter what, especially if you’re committing to destroying the datasets as well. That implies you basically used 1.5B for a few years of additional training data, a huge price.