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OpenAI’s internal Slack messages could cost it billions in copyright suit

Authors and publishers suing OpenAI over copyright infringement were granted access to internal OpenAI communications about the deletion of a pirated books dataset, and now want to review attorney communications.

Jon Keegan

Among the many copyright infringement cases that AI companies are defending themselves against, one piece of evidence keeps popping up: their use of pirated book databases like LibGen to train AI models.

The plaintiffs didn’t have to look far to discover this information, as early AI company research papers often freely mentioned the use of them. Since these research documents have been cited as evidence in lawsuits, AI companies have been far more cautious when they discuss the training materials used to build their models.

LibGen is again at the center of an AI copyright case, this time in a lawsuit filed by authors and publishers against OpenAI. Bloomberg Law reports that the plaintiffs got ahold of internal OpenAI emails and Slack messages that discussed deleting the LibGen data.

In an extraordinary move, the plaintiffs have asked the judge for access to the communications between OpenAI and its attorneys, by invoking a “crime-fraud” exemption to privilege. The plaintiffs want to know if the lawyers told OpenAI to delete the dataset, which could be construed as intentional destruction of evidence. As Bloomberg reported, if that is allowed, and shown to be the case, OpenAI could be exposed to charges of “willful infringement,” which could enhance penalties up to $150,000 per work, as well as steep sanctions from the court.

OpenAI pushed back on the allegations in a letter to the judge, adamantly denying that it had waived attorney-client privilege. In the letter, OpenAI’s attorneys wrote:

“OpenAI has consistently maintained that the reasons for the removal are privileged because they were legal decisions made in consultation with counsel. At no point has OpenAI disclosed or relied on the privileged reasons or retracted its position, and it has made clear that there are no non-privileged reasons.

After reviewing documents in private, US Magistrate Judge Ona Wang allowed some communications to be withheld, but ordered other messages to be produced. The case remains ongoing.

It’s not the first time that a Big Tech company’s internal communications surrounding its use of copyrighted material showed up as evidence in a lawsuit. According to messages revealed in discovery during a copyright case, Meta’s researchers expressed reservations about using LibGen, describing it as a “data set we know to be pirated.” Per the filings, the issue was escalated to “MZ,” who approved the pirated library’s use.

In June, a federal judge in the Northern District of California ruled that Anthropic did not violate the copyright of a group of authors when it used their works for training its Claude AI model — but only for the books that the company actually purchased, scanned, and ingested. The other works that Anthropic used to train its model from a pirated book dataset dubbed “The Pile” were found to not fall under “fair use” and called for a separate trial. In August, the company announced a $1.5 billion settlement with the authors that could end up costing it quite a bit more after class-action claims are calculated.

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Jon Keegan

Trump pulls tech execs even closer, adding Zuckerberg, Huang, Ellison, and others to tech council

President Trump has had a close relationship with America’s biggest tech leaders. They have flown across the world for investment announcements, attended intimate dinners at the White House, donned tuxedos and white ties for royal banquets, and have been known to bring golden gifts to him in the Oval Office.

Today he brings them in even closer. The White House announced that Nvidia CEO Jensen Huang, Meta CEO Mark Zuckerberg, and close pal and Oracle cofounder Larry Ellison will join a new President’s Council of Advisors on Science and Technology, along with 10 other tech leaders including Dell founder Michael Dell and Google cofounder Sergey Brin.

According to the White House, the group will “focus on topics related to the opportunities and challenges that emerging technologies present to the American workforce, and ensuring all Americans thrive in the Golden Age of Innovation.”

The full list of appointees:

Today he brings them in even closer. The White House announced that Nvidia CEO Jensen Huang, Meta CEO Mark Zuckerberg, and close pal and Oracle cofounder Larry Ellison will join a new President’s Council of Advisors on Science and Technology, along with 10 other tech leaders including Dell founder Michael Dell and Google cofounder Sergey Brin.

According to the White House, the group will “focus on topics related to the opportunities and challenges that emerging technologies present to the American workforce, and ensuring all Americans thrive in the Golden Age of Innovation.”

The full list of appointees:

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Saleah Blancaflor

Prediction markets show a tight (and tightening) Illinois Democratic Senate primary

It’s primary election time in Illinois, and as voters in the state head to the polls on March 17, there are a few races to watch closely across both parties.

While polls show that Darren Bailey is leading in the Republican race for governor, the primary election for a rare seat in the Democratic Senate to replace Sen. Dick Durbin is proving to be a tight one.

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At the top of the 10-candidate race are Raja Krishnamoorthi, Lt. Gov. Juliana Stratton, and Robin Kelly. Krishnamoorthi, a lawmaker from Chicago’s 8th Congressional District, was an early front-runner, received funding and support from several Congress members for the seat. Kelly, who represented the South Side’s 2nd Congressional District, has support from the Congressional Black Caucus and South Carolina Rep. Jim Clyburn. Meanwhile, Stratton has been endorsed by Gov. JB Pritzker, whose administration she used to work for, as well as Sen. Elizabeth Warren.

While polls suggested that Krishnamoorthi was favored to win, Stratton has seen a boost and late surge, though Krishnamoorthi still remains close behind. Capitol News Illinois reports that Illinois Future PAC, funded by Pritzker, has spent more than $10 million on ads elevating Stratton. Meanwhile, two PACs affiliated with the crypto industry have attempted to attack Stratton and promote Kelly. Indian American Impact, which endorsed Krishnamoorthi, reportedly employed similar tactics against Stratton.

Political insiders tell Capitol News Illinois the race could go either way, but they still expect Krishnamoorthi to come out on top. Prediction markets currently show that Stratton narrowly leading Krishnamoorthi.

(Event contracts are offered through Robinhood Derivatives, LLC — probabilities referenced or sourced from KalshiEx LLC or ForecastEx LLC.)

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At the top of the 10-candidate race are Raja Krishnamoorthi, Lt. Gov. Juliana Stratton, and Robin Kelly. Krishnamoorthi, a lawmaker from Chicago’s 8th Congressional District, was an early front-runner, received funding and support from several Congress members for the seat. Kelly, who represented the South Side’s 2nd Congressional District, has support from the Congressional Black Caucus and South Carolina Rep. Jim Clyburn. Meanwhile, Stratton has been endorsed by Gov. JB Pritzker, whose administration she used to work for, as well as Sen. Elizabeth Warren.

While polls suggested that Krishnamoorthi was favored to win, Stratton has seen a boost and late surge, though Krishnamoorthi still remains close behind. Capitol News Illinois reports that Illinois Future PAC, funded by Pritzker, has spent more than $10 million on ads elevating Stratton. Meanwhile, two PACs affiliated with the crypto industry have attempted to attack Stratton and promote Kelly. Indian American Impact, which endorsed Krishnamoorthi, reportedly employed similar tactics against Stratton.

Political insiders tell Capitol News Illinois the race could go either way, but they still expect Krishnamoorthi to come out on top. Prediction markets currently show that Stratton narrowly leading Krishnamoorthi.

(Event contracts are offered through Robinhood Derivatives, LLC — probabilities referenced or sourced from KalshiEx LLC or ForecastEx LLC.)

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Anthropic sues the US government

In response to the Pentagon’s unprecedented, punitive determination that Anthropic is a national security supply chain risk, the AI startup has sued the US government.

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OpenAI is reportedly working with Pentagon to hash out guardrails amid Anthropic standoff over AI safety

OpenAI CEO Sam Altman said the company is working with the Pentagon to negotiate safety guardrails for AI models used in the battlefield, which comes as one of its top competitors, Anthropic, is at a standoff with the government.

According to a memo obtained by several media outlets, Altman told staff OpenAI believes “that AI should not be used for mass surveillance or autonomous lethal weapons, and that humans should remain in the loop for high-stakes automated decisions. These are our main red lines.”

Anthropic, the company behind the AI chatbot Claude, was one of several firms that received a $200 million contract from the Department of Defense for “agentic workflows.”

Since then, tensions between Anthropic and the Pentagon have reportedly risen as the startup insists on surveillance restrictions. The government’s attack on Venezuela last month that led to the capture of President Nicolás Maduro reportedly involved the use of Anthropic’s Claude AI models for planning, which caused the startup to push back on the alleged violation of its terms of use.

Anthropic has until 5:01 p.m. ET on Friday to reach a deal with the Pentagon, which has threatened consequences against the company if it doesn’t allow the government unrestricted use.

Altman’s comments come as the Financial Times reports that executives at Amazon, Google, and Microsoft are being pushed by workers to support Anthropic in its dispute with the Pentagon and adopt similar guardrails as the Claude company in any work they undertake with the US military.

According to a memo obtained by several media outlets, Altman told staff OpenAI believes “that AI should not be used for mass surveillance or autonomous lethal weapons, and that humans should remain in the loop for high-stakes automated decisions. These are our main red lines.”

Anthropic, the company behind the AI chatbot Claude, was one of several firms that received a $200 million contract from the Department of Defense for “agentic workflows.”

Since then, tensions between Anthropic and the Pentagon have reportedly risen as the startup insists on surveillance restrictions. The government’s attack on Venezuela last month that led to the capture of President Nicolás Maduro reportedly involved the use of Anthropic’s Claude AI models for planning, which caused the startup to push back on the alleged violation of its terms of use.

Anthropic has until 5:01 p.m. ET on Friday to reach a deal with the Pentagon, which has threatened consequences against the company if it doesn’t allow the government unrestricted use.

Altman’s comments come as the Financial Times reports that executives at Amazon, Google, and Microsoft are being pushed by workers to support Anthropic in its dispute with the Pentagon and adopt similar guardrails as the Claude company in any work they undertake with the US military.

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Sherwood Media, LLC produces fresh and unique perspectives on topical financial news and is a fully owned subsidiary of Robinhood Markets, Inc., and any views expressed here do not necessarily reflect the views of any other Robinhood affiliate, including Robinhood Markets, Inc., Robinhood Financial LLC, Robinhood Securities, LLC, Robinhood Crypto, LLC, Robinhood Derivatives, LLC, or Robinhood Money, LLC. Futures and event contracts are offered through Robinhood Derivatives, LLC.