📚 Authors win $1.5B from Anthropic

Also: Google pushes AI Mode

In partnership with

Welcome, AI enthusiasts

Anthropic will pay at least $1.5 billion to settle claims from U.S. authors whose books were used to train its systems. The deal averages about $3,000 per work and could grow if more authors join. Let’s dive in!

In today’s insights:

  • Authors win $1.5B from Anthropic

  • Google pushes AI Mode

  • ChatGPT learns to admit uncertainty

Read time: 4 minutes

LATEST DEVELOPMENTS

Source: Anthropic

Evolving AI: Anthropic agrees to pay $1.5B in landmark copyright settlement with authors.

Key Points:

  • Authors set to receive about $3,000 per book, covering roughly 500,000 works.

  • Settlement includes destroying pirated files used for AI training.

  • Court approval pending, hearing scheduled for September 8.

Details:

Anthropic will pay at least $1.5 billion to settle claims from US authors whose books were allegedly used without permission to train AI systems. The payout, averaging $3,000 per work, could increase if more claims are filed. The deal requires Anthropic to delete pirated files, and it only covers past activity through August 25, 2025. Court approval is the next step before payments begin.

Why It Matters:

Paying $3,000 per book and deleting pirated files signals that AI teams need licensed, traceable datasets and provenance logs from day one or risk retroactive bills and forced deletions. Expect more publisher deals, tighter audits, bigger training budgets and, in some cases, retraining that slows release cadence and nudges pricing. Creators gain a payout path and stronger leverage in negotiations. If you roll out AI at work, ask vendors where the training data came from and whether they indemnify customers, or you might inherit the risk.

Create How-to Videos in Seconds with AI

Stop wasting time on repetitive explanations. Guidde’s AI creates stunning video guides in seconds—11x faster.

  • Turn boring docs into visual masterpieces

  • Save hours with AI-powered automation

  • Share or embed your guide anywhere

How it works: Click capture on the browser extension, and Guidde auto-generates step-by-step video guides with visuals, voiceover, and a call to action.

Evolving AI: Google is preparing to make AI Mode the default search experience.

Key Points:

  • AI Mode expands on AI Overviews with chat-style follow ups.

  • Google says the open web is in "rapid decline" in its legal defense.

  • New AI Mode features let users buy tickets and book services directly.

Details:

Google’s AI Mode, already active in 180 countries, is edging closer to replacing traditional search as the default. It builds on AI Overviews by letting people continue conversations with the AI, turning search into a closed system. At the same time, Google’s lawyers are arguing in an antitrust case that the open web is shrinking, using this as a reason not to break up its ad tech business. The irony is that Google’s own shift to AI-driven search speeds up that very decline.

Why It Matters:

AI Mode keeps more of the journey inside Google: quick answers, restaurant bookings and soon tickets without leaving search. That trims referral traffic for publishers and squeezes comparison sites, shifting ad spend toward Google surfaces and away from the open web. Marketers should prep for fewer organic clicks, invest in structured data and first‑party lists, and test retail media and CTV mixes. Regulators face a search, ads and assistant stack merged into one.

Source: OpenAI

Evolving AI: OpenAI wants ChatGPT to say "I don't know" instead of guessing.

Key Points:

  • Language models will always make things up, but can improve at spotting uncertainty.

  • New benchmarks could reward models for honesty rather than risky guesses.

  • Early signs show ChatGPT declining to guess on tough math problems.

Details:

OpenAI says ChatGPT will always hallucinate, but the goal is to make it better at recognizing when it doesn’t know something. Instead of inventing answers, future models could pause, use external tools, or admit uncertainty. Current benchmarks push models to guess, which fuels false responses. By redesigning evaluations to accept “I don’t know,” OpenAI hopes to encourage more trustworthy answers.

Why It Matters:

Expect fewer bogus answers in support tickets, coding assistants, finance notes, and medical scribes, plus clearer audit trails for regulators. Early signs are visible already, from newer ChatGPT builds declining to guess to OpenAI’s IMO model refusing problem six. For buyers, ask for APIs that expose calibrated confidence and refusal rates, then track cost per avoided error, not just accuracy.

How 433 Investors Unlocked 400X Return Potential

Institutional investors back startups to unlock outsized returns. Regular investors have to wait. But not anymore. Thanks to regulatory updates, some companies are doing things differently.

Take Revolut. In 2016, 433 regular people invested an average of $2,730. Today? They got a 400X buyout offer from the company, as Revolut’s valuation increased 89,900% in the same timeframe.

Founded by a former Zillow exec, Pacaso’s co-ownership tech reshapes the $1.3T vacation home market. They’ve earned $110M+ in gross profit to date, including 41% YoY growth in 2024 alone. They even reserved the Nasdaq ticker PCSO.

The same institutional investors behind Uber, Venmo, and eBay backed Pacaso. And you can join them. But not for long. Pacaso’s investment opportunity ends September 18.

Paid advertisement for Pacaso’s Regulation A offering. Read the offering circular at invest.pacaso.com. Reserving a ticker symbol is not a guarantee that the company will go public. Listing on the NASDAQ is subject to approvals.

 👀 Click on the image you think is real

QUICK HITS

🎞️ OpenAI Backs AI-Made Animated Feature Film.

😧 ‘Godfather of AI’ says the technology will create massive unemployment and send profits soaring.

📈 ASML becomes Mistral AI’s top shareholder after leading latest funding round.

💸 Google cuts API prices for Veo 3 by up to 60 percent.

💪 Silicon Valley’s most powerful alliance just got stronger.

📈 Trending AI Tools

  • 🗣️ Elevenlabs - Turn text into voices so real, you’ll forget you’re listening to AI*

  • ☄️ Comet - AI browser, free for students

  • 📸 Photify AI - Transform your selfies

  • 📊 Endex – AI “digital analyst” embedded in Microsoft Excel for automating data processing, financial modeling, and report writing

  • 🗣️ izTalk - Break the language barrier using AI

 *partner link

Reply

or to participate.