Tech Brew Ride Home - Does Anthropic Owe Me $3000?

Episode Date: September 8, 2025

Anthropic has agreed to pay $1.5 billion dollars to authors of books that might have trained their AI. Would my book qualify for some of that money? Also, why this is interesting in general. OpenAI is making a movie. Tokenizing the stock market. Three interesting raises, and at the end of the show, let me tell you about my weekend experiment with AI. Links: Anthropic Reaches $1.5 Billion Author Copyright Settlement (Bloomberg) OpenAI Backs AI-Made Animated Feature Film (WSJ) Nasdaq makes push to launch trading of tokenized securities (Reuters) Mistral Set for $14 Billion Valuation With New Funding Round (Bloomberg) Databricks Crosses $4 Billion in Annual Revenue Rate (WSJ) ElevenLabs to Let Staff Sell Shares at $6.6 Billion Valuation (Bloomberg) AI Generated 'Boring History' Videos Are Flooding YouTube and Drowning Out Real History (404Media) My AI Experiment: The History of Amazon My AI Expeirment: The History of Google Learn more about your ad choices. Visit megaphone.fm/adchoices

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Google Fi Wireless is not subject to data traffic deprioritization during times of high network usage. Welcome to the Tech Brew Right Home for Monday, September 8th, 2025. I'm Brian McCullough today. Anthropic has agreed to pay $1.5 billion to authors of books that might have trained their AI. Would my book qualify for some of that money? Also, why this is an interesting thing in general. Also, Open AI is making a movie, tokenizing the stock market, three interesting raises, and at the end of the show, let me tell you about my weekend experiment with AI. Here's what you miss today in the world of tech. Well, this would be one of the first. of the reasons they raised all that money recently, I guess. Anthropic has agreed to pay one and a half billion dollars plus interest to resolve an author's copyright lawsuit over the company's downloading of millions of pirated books, quoting Bloomberg. A request for preliminary approval of the accord involving one of the fastest growing AI startups was filed Friday with a San Francisco federal judge who had set the closely watched case for trial in December. The settlement is among the first in dozens of copyright lawsuits filed against AI leaders, including

open AI, meta-platforms, and mid-jurney, and alleging misuse of proprietary online content. Anthropic had said in a court filing that it felt, quote, inordinate pressure to cut a deal to avoid a potentially business-ending trial that could have put the company on the hook for as much as $1 trillion in damages. The startup recently reached $5 billion in terms of run-rate revenue and raised $13 billion in investment at a $183 billion valuation. But Anthropic is still ultimately unprofitable due to the high cost of developing AI. A lawyer representing the plaintiffs said the accord, quote, far surpasses any other known copyright recovery. This settlement sends a powerful message to AI companies and creators alike that taking copyrighted works from these

pirate websites is wrong. Justin Nelson of Sussman Godfrey said in a statement, the case was brought as a class action on behalf of the authors of as many as seven million books who claimed that the startup illegally used downloaded pirated versions of their copyrighted texts to train its large language AI models, even though it was unclear whether those materials were actually used for training. A lawsuit of that size could have driven the company to bankruptcy if it were to lose in trial. Under the terms of the deal, Anthropic will pay about $3,000 for each of about $500,000 books in the class. If more claims are submitted, the total payout would grow. The company also agreed to destroy data. It was accused of illegally downloading. A hearing on the proposed

settlement is set for September 8th, end quote. Hmm, I wonder if I should apply for this. $3,000 ain't chump change, and I'm sure my book on the history of the internet is in there. I did an AI project this weekend, and it cited research that I did years ago, more on that, at the end of the episode. But M. G. Siegler makes a great point about this case. case specifically, quote, you can't help but wonder if part of the equation in the settlement wasn't decidedly cynical. Fresh off a new massive fundraise, one in which they raised far more than they were initially targeting, Anthropic has a lot of money, more than perhaps all but one of their competitors on the startup side. By settling for $1.5 billion, is Anthropic sort of

pulling up a drawbridge, making it so that other startups can't possibly come into their castle? I mean, am I crazy? I'm not sure I am. At $1.5 billion, there are only a handful of companies that could afford to pay such fines. Certainly, OpenAI is one, maybe XAI, and of course all the tech giants like Apple, Amazon, Microsoft, Google, and meta. But could any other startup that has done any level of model training with such data? Probably not. And so I wonder, did Dario Ammodai just pull a Michael Corleone-like elimination of enemies move overnight? Was this a maneuver he learned from Elon Musk? Oh, Open AI wants to convert into a for-profit, let's set a new floor price on that. Dario just set a floor price on AI training infringement. This is a message to all competitors. A standard has been set. Open up those wallets if you want to keep playing this game. I'm watching a lot of journalists and writers seem almost euphoric at the news. How much is my work worth? Again, not so fast. This move may actually jolt the market in a bad way by taking out would-be competitors for your words. Anthropic says it's settling because they didn't want to risk having to spend trillions.

That may or may not have come to pass, but certainly Anthropic was more likely to have to spend trillions if the AI wars continue on as they have been these past couple years, battling so many companies on so many fronts. With this move, Anthropic may have just narrowed that field, end quote. Meanwhile, full speed ahead, I guess, in terms of creation in another direction. Open AI is providing its tools and computing resources for Critters, a largely AI-made feature-length animated film that is set to hit theaters globally in 26. Quoting the journal, Critters about forest creatures who go on an adventure after their village is disrupted by a stranger is the brainchild of Chad Nelson, a creative specialist at OpenAI. Nelson started sketching out the characters three years ago while trying to make a short film with what was then Open AI's new Dolly Image Generation tool. Now he has teamed up with

production companies in London and Los Angeles aiming to debut a feature-length version of the film at the Cannes Film Festival in May. The team is attempting to make the movie in about nine months instead of the three years it would typically take, said James Richardson, co-founder of London-based Vertigo Films. Vertigo is producing the film along with Native Foreign, a studio that specializes in using AI along with traditional video production tools. Critters has a budget of less than $30 million, far less than what animated films typically cost. The production team plans to cast human actors for character voices and higher artists to draw sketches that are fed into OpenAI's tools, including GPT5 and image-generating models. Open AI can say what its tools do all day long, but it's much more impactful if someone does it, Nelson said.

That's a much better case study than me building a demo. The script for Critters was written by some members of the team that wrote Paddington in Peru. Production has begun, and casting decisions for the voices of the characters will be made in the next few weeks. It is funded by Vertigo's Paris-based parent company Federation Studios. The studios involved are developing a compensation model to allow the roughly 30 people working on Critters to share in any profits, Nelson said. Open AI is betting that if Critters is successful, it will show that AI can deliver content strong enough for the big screen and accelerate Hollywood's adoption of the technology, Nelson said. Open AI's tools also lower the cost of entry, allowing more people to make creative content, he said. and Open AI spokesman said the film reflects the kind of creativity and exploration we love to encourage, end quote.

Again, I encourage you to listen to the end of the show because my weekend experiment kind of ties into this. We really haven't gotten a chance to talk about from the crypto world has been the increasing move to tokenize everything. Like you can trade tokenized versions of stock, even stock like OpenAI stock, which is weird because they're not public yet. and OpenAI doesn't approve of you doing that, but again, I guess it's full speed ahead. The NASDAQ has reportedly asked the U.S. Securities and Exchange Commission to let investors trade tokenized securities on its exchange, potentially rolling out the first token-settled trades in Q3 of 2026, quoting Reuters. If approved, the move would mark the first instance of tokenized securities being allowed to trade

on a major U.S. stock exchange and also signify the most ambitious attempt yet by an exchange operator to bring blockchain-based settlement into the national market system. NASDAQ on Monday filed a proposal with the U.S. Securities and Exchange Commission to tweak its rules to allow for trading of listed stocks and exchange-traded products on its main market in, quote, either traditional digital or tokenized form. The filing comes days after the SEC unveiled its rulemaking agenda, which included a potential amendment of its rules to allow for crypto to be traded on national securities exchanges and alternative trading systems.

The latest developments come as investor demand for, for tokenized assets is rising globally. Proponents of the crypto industry have argued that tokenization can improve liquidity in the financial system. Coinbase, the largest U.S. crypto exchange, has also previously sought permission from the SEC to offer tokenized equities to its customers. Some major global banks, including Bank of America and City, have said they could explore launching tokenized assets, including stable coins.

In its filing on Monday, NASDAQ said it believes the market can use tokenization while, quote, continuing to provide the benefits and protections of the national market system. Wholesale exemptions from the national market system and related protections are neither necessary to achieve the goal of accommodating tokenization, nor are they in investors' best interests, NASDAQ said. Some critics of the industry have warned that the frenzy around tokenization could introduce new systemic risks, especially in the absence of stringent regulation. In July, Hester Pierce, a commissioner at the U.S. Securities and Exchange Commission, who has frequently spoken positively about cryptocurrency, said tokenized securities would not be

able to circumvent existing securities laws. The term tokenization is used in a variety of ways, but generally refers to the process of turning financial assets such as bank deposits, stocks, bonds, funds, and even real estate into crypto assets. Under new SEC chair, Paul Atkins, the SEC has been attempting to revamp cryptocurrency regulations and reduce rules. Wall Street has criticized as being overly burdensome. If the latest policies are adopted, they will would represent a major win for the digital asset industry, which has long pushed for tailored rules that would enable crypto to become more ammeshed with traditional finance. On Monday, NASDAQ pointed out that trading of tokenized stocks in Europe is taking place in a way

that is raising concerns, as some trading platforms are offering investors access to tokenize U.S. equities, but they are not providing investors with actual shares in companies. As part of its new proposal, NASDAQA argued it would raise the bar for tokenized securities to have the same material rights and privileges as do traditional securities of an equivalent class. If those conditions are met, the NASDAQ will trade tokenized securities together with traditional securities, quote, on the same order book and according to the same execution priority rules, it said. The exchange will not treat tokenized instruments to be equivalent to their traditional counterparts if they do not convey such rights in whole or in material part, but instead

the exchange will treat these instruments as distinct, NASDAQ added. If NASDAQ's proposal is approved. And once the central clearing agency's infrastructure is live, investors could buy a share on NASDAQ and have it settle in token form without changing how orders are routed, price surveilled, or reported, end quote. Study and play. Come together on a Windows 11 PC. And for a limited time, college students get the best of both worlds. Get the unreal college deal, everything you need, to study and play with select Windows 11 PCs. Eligible students get a year of Microsoft 365 premium and a year of Xbox GamePass Ultimate with a custom color Xbox wireless controller.

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Whatever needs to be done for your thing, Canva can make it an even better and bigger thing. Canva, the thing that makes anything a thing. Several interesting raises here. So interesting raise, one. Remember Mistral? The French-based Dark Horse in the big model AI race. Well, Mistral AI is apparently finalizing a two billion euro investment that will value the startup at $12 billion, its first fundraise since June of 2024, when it was valued at $5.8 billion. quoteing Bloomberg. The rival to Open AI is developing open source language models as well as a chatbot tailored to European users called LeChat and other AI services. It was founded in 2023 by Arthur

Munch, a former deep-mind researcher and ex-metter researchers Timothy LeCroy and Guillaume Lampel. Mr. O. has sought to carve out a space in a field increasingly dominated by U.S. and Chinese large language models and has previously raved over one billion euro from investors across the globe, including Andresen Horowitz, General Catalyst, Lightspeed Venture Partners, and BNP Parabas. This is the company's first fundraise since June 2024 when it was valued at 5.8 billion euro. Earlier this year, Mench said the company was considering tapping outside capital to establish a data center in France. In addition to early funding discussions, the company also recently held talks to raise hundreds of millions of euros in debt for mistral compute.

Its new AI cloud service in France developed in partnership with NVIDIA from French lenders, Bloomberg reported, end quote. Well, in light of that, listen to this. ASML is reportedly committing $1.3 billion for Mistral's $1.7 billion Series C at a $10 billion pre-money valuation, and so is set to become Mistral's top shareholder and also get a board seat. Quoting Reuters, the round will make Mistrel the most valuable AI company in Europe with a $10 billion or $11.7 billion pre-money valuation in its latest Series C funding round, the people said. Often presented as France's and Europe's AI champion, Mistral competes with U.S. giants such as OpenAI and Alphabet's Google. A stake in Mistrel would tie together two European technology leaders,

and the cash from ASML could help Mistral make Europe less reliant on U.S. and Chinese AI models, the sources said. ASML makes lithography equipment crucial for cutting-edge chip production and uses AI to help make its tools more efficient. The company could benefit from implementing Mistral's data analytics and AI capabilities to improve the performance of its tools and develop additional products, end quote. Interesting raise two. Not specifically AI, but listen, closely because in a second it is going to be tied into AI. Databricks is reportedly set to close $1 billion in funding at a $100 billion valuation and says it is on track to generate $4 billion

in revenue in its fiscal year ending in January 2026, up 50% year on year, quoting the journal. Databricks, which stores, catalogs and processes large datasets, has reaped the rewards of the artificial intelligence boom. Sales of AI products will generate $1 billion of revenue for fiscal 2025, the company said. Data scientists at its client companies use its software to analyze large volumes of information they collect. New customers this year include Honda, Pete's Coffee, and Princeton University, chief executive officer and co-founder Ali Goetzie said in an interview, roughly 650 customers currently each pay Databricks $1 million a year for its products and services, he said. Goetze said the company had positive free cash flow in the past 12 months, though he declined to share operating costs.

We are going to continue to keep this profile where we don't burn any cash on an annual basis, he said. Databricks secured $10 billion from investors last December. Also, the company announced in January $5.3 billion in debt financing from a list of big banks. The latest round of financing will add to the company's war chest for employee recruitment and retention to help it in the escalating AI talent wars. The vast majority of our costs goes to wages and it's definitely expensive to spend on AI talent, Goatsy said, end quote. And finally, interesting raise number three, quoting Bloomberg. 11 labs, an artificial intelligence audio startup capable of creating a wide range of realistic sounding voices, is letting employees sell shares at a valuation of $6.6 billion, double its previous value.

The tender offer, which will allow staff to sell as much as $100 million in stock, is an increasingly popular tactic for AI startups engaged in a fierce competition for talent. The offer will let employees who have worked at the company for at least a year to cash in on valuable shares and allow more investors to boost their stake in the company. Since its founding in 2022, 11 Labs has attracted both praise and controversy for its hyper-realistic voices, its tools can create. The company lets users generate audio and multiple languages, create virtual customer support agents, and even make podcasts, end quote. First up, quick note that tomorrow is the iPhone event, so tomorrow's show will be a few hours late as usual to account for me watching and telling you all about that event. But more on 11 Labs and My Weekend Experiment.

Longtime listeners will remember 11 Labs as the AI company. I first started using to clone my voice. What was it? Three or four years ago now? Well, coincidentally, over the weekend, I read this article about AI-generated so-called boring history videos. The idea is you get AI to write a script about, say, the Middle Ages, then you use a soft AI voice to narrate it,

put it on YouTube, and people use it to fall asleep. same way I use audiobooks, just interesting enough to turn your brain off, but not so interesting that you stay awake. These are apparently flooding YouTube right now, and the concern is that they are overshadowing authentic historian content, which requires extensive research and production time, of course. Well, of course, I heard about this, and I was like, I got to try my hand at it. So Saturday afternoon, I prompted ChatGPT to write extensive 10,000-word histories, one of Google and one of Amazon. Then I threw the script into 11 last. since I still had an account there, chose a really soft-sounding British voice to use, and

voila. I had two roughly 90-minute boring tech history narratives that you could fall asleep to, so I threw them up on YouTube. The last two links at the very bottom of today's show notes are to those two videos. Check them out, because, I mean, we're basically there, people. We're basically at the point where you can replace Brian, the tech historian and tech podcaster, with AI. The AI voice is basically perfect.

Here are the caveats. With this experiment, I did take the time to get it right. I didn't just prompt the AI once and just throw it up without checking, which I'm assuming a lot of these other video producers are doing. I prompted AI over and over again dozens of times to get things right. You know, okay, give me 800 more words on the founding of YouTube and be more detailed, and I made sure that everything was accurate. I read the whole script.

I checked its sources. that's how I knew it was referencing Internet History podcast interviews as sources. Interviews I did a decade ago. So some random thoughts on this. Yes, AI can now do what I do, but is there value in still having me do it actually do the AI? Me being the curator, me being the conductor of the orchestra, if you will. I know this history, this tech history, so I know what it got right or wrong and or I knew when to nudge it to be more detailed or more accurate or more whatever. So sure, the whole thing is AI, but is there value in knowing that it was AI generated

by an expert like me in this area? Like, you shouldn't trust me to make a two-hour video about particle physics or something I know nothing about, but is there value in getting AI slop if it's been brewed up by someone who knows their stuff? Like, listen to a few minutes of the videos. If you seriously wanted to get a fairly comprehensive 90-minute lecture that summarizes the full history of Amazon or Google as companies. I think these videos stand up pretty darn well. More thoughts on this later, but I'd be curious to know what y'all think. This is nowhere near as ambitious as that Open AI Critters movie that we talked about in the show, but I do think it's quality? Is there a role for AI slop if artisans you trust are the ones behind it? You trust

them to curate the slop accurately and with taste. I want to do one more experiment along these lines. I'm working on it right now, generating a video on something that I don't know that much about to see how much work is involved in double-checking everything and getting it as right as I can, even if I'm not an expert. More on that when I finish it. But click the links in the show notes.

Scroll on the videos and listen for a minute or two. Yes, it's AI slop, but what I'm poking at here is is it good AI slop? Is such a thing possible? Talk to you tomorrow for the iPhone day. Ambition comes in all shapes and

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