Judge Says Amazon (AMZN) – and Alphabet (GOOG) – Backed Anthropic Can Train AI on Books, but Storing Pirated Copies Violates Copyright

Alphabet Inc. (NASDAQ:GOOG) is one of the 12 best-augmented reality stocks to buy, according to analysts. On June 24, a U.S. judge ruled that AI company Anthropic—backed by Amazon and Alphabet—lawfully used copyrighted books to train its Claude large language model under the fair use doctrine. U.S. District Judge William Alsup described the training as “exceedingly transformative,” equating it to a writer learning from existing literature to create new content.

Judge Says Amazon (AMZN) - and Alphabet (GOOG) - Backed Anthropic Can Train AI on Books, but Storing Pirated Copies Violates Copyright

However, the court also found that Anthropic infringed copyright by storing over 7 million pirated books in a centralized library not strictly used for training purposes. A trial set for December will determine damages, which could reach up to $150,000 per work under U.S. law. This marks the first court decision on fair use in the context of generative AI—a critical precedent for the broader tech industry.

Alphabet Inc. (NASDAQ:GOOG) is a technology giant involved in augmented reality (AR) in several ways. It offers AR features in Google Maps, Search, and Lens, and it develops ARCore, a software development kit (SDK) for creating AR experiences.

While we acknowledge the potential of GOOG as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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