September 8, 2025

finance  
Anthropic $1.5B Lawsuit, OpenAI $115B Spend, Nvidia Chip Focus

The artificial intelligence landscape is seeing significant financial and legal developments. AI company Anthropic is set to pay $1.5 billion to settle a class-action lawsuit filed by authors who claimed their books were used without permission to train Anthropic's AI chatbot, Claude. This settlement, potentially the largest copyright settlement in history, includes compensation for authors and the destruction of training datasets. Meanwhile, OpenAI is projecting a substantial increase in spending, forecasting up to $115 billion through 2029, nearly $80 billion more than previously estimated. The company is developing its own data center server chips and facilities to manage escalating computing costs, which are expected to exceed $150 billion between 2025 and 2030. OpenAI has also reportedly placed a $10 billion order for AI accelerators with Broadcom, with shipments expected to begin in 2026, a deal that has boosted Broadcom's revenue and stock. Broadcom's Q3 revenue saw a 22% year-over-year increase, reaching $15.95 billion. Nvidia's market dominance in AI chips is facing scrutiny due to its increasing reliance on two major unnamed customers, who accounted for 39% of its revenue last quarter. Despite this concentration risk, analysts maintain a positive outlook on Nvidia. Arm Holdings is positioning itself for the next wave of smart devices with its Edge AI focus, partnering with companies like Nvidia, Microsoft, and Alphabet, and potentially Meta Platforms. SoundHound AI, a voice-activated AI company, is experiencing strong sales growth, with Q2 revenue at $42.7 million, though it remains unprofitable. Tempus AI, which offers AI solutions for healthcare, finance, and retail, saw its stock price decrease by 2.5%. Alphabet's stock gained momentum after a favorable antitrust ruling regarding its Chrome browser, bolstering its AI business and core digital ad operations. Startup Koah has raised $5 million in seed funding to integrate advertising into AI applications, aiming to provide an alternative monetization strategy for developers.

Key Takeaways

  • Anthropic will pay $1.5 billion to settle a copyright lawsuit with authors over the use of their books for AI training, a settlement reportedly the largest of its kind.
  • OpenAI projects its spending through 2029 could reach $115 billion, a significant increase from prior estimates, as it develops its own chips and data centers.
  • OpenAI has reportedly placed a $10 billion order for AI accelerators with Broadcom, with shipments slated for 2026.
  • Broadcom reported a 22% year-over-year increase in Q3 revenue, reaching $15.95 billion, partly driven by a large AI chip deal.
  • Nvidia's revenue is increasingly concentrated, with two unnamed customers accounting for 39% of its revenue in the latest quarter.
  • Arm Holdings is focusing on Edge AI for smart devices and has partnered with major tech companies including Microsoft, Nvidia, and Alphabet, with Meta Platforms as a potential customer.
  • SoundHound AI reported triple-digit sales growth with Q2 revenue of $42.7 million but is not yet profitable.
  • Alphabet's stock rose following a judge's ruling that allows it to keep its Chrome browser, seen as a positive for its AI business.
  • Startup Koah raised $5 million in seed funding to integrate advertising into AI applications as a monetization strategy for developers.
  • Tempus AI, which provides AI solutions for various sectors, experienced a 2.5% decrease in its stock price.

Anthropic pays $1.5B to authors over pirated chatbot training data

Artificial intelligence company Anthropic will pay $1.5 billion to settle a lawsuit with authors. The authors claimed Anthropic used pirated copies of their books to train its AI chatbot, Claude. This settlement, if approved, could be a major turning point for legal battles between AI companies and creators. Anthropic will pay authors about $3,000 for each of the estimated 500,000 books involved. The company will also destroy the original book files it used for training.

AI firm Anthropic settles copyright case for $1.5 billion

Artificial intelligence company Anthropic has agreed to pay $1.5 billion to settle a lawsuit concerning its use of pirated books for AI training. The settlement, if approved by a judge, would be the largest of its kind. Authors Andrea Bartz, Charles Graeber, and Kirk Wallace Johnson sued Anthropic, claiming their works were used without permission to train the Claude AI system. Anthropic will compensate authors and destroy the data sets used for training.

Anthropic agrees to $1.5 billion settlement in AI copyright lawsuit

Artificial intelligence startup Anthropic has agreed to pay $1.5 billion to settle a copyright lawsuit. Authors accused the company of illegally accessing and using their books to train its AI models. The settlement includes about $3,000 per book plus interest, and Anthropic will destroy the training datasets. This case is significant as it addresses copyright infringement in the AI era.

Anthropic settles $1.5B AI training data copyright lawsuit

AI company Anthropic has agreed to pay $1.5 billion to settle a class-action lawsuit filed by authors. The authors claimed Anthropic used their books without permission to train its Claude chatbot. The settlement, announced in a federal court filing, is reportedly the largest publicly disclosed copyright settlement in history. A judge had previously ruled that while training AI models could be fair use, storing millions of pirated books was a violation.

Broadcom Q3 revenue up 22% after $10B OpenAI deal

Broadcom reported a 22% year-over-year increase in Q3 revenue, reaching $15.95 billion. The company also announced a $10 billion deal with a new customer for AI accelerators, widely reported to be OpenAI. This deal involves orders for AI racks based on Broadcom's XPUs, expected to begin shipping in 2026. Analysts at Bank of America raised Broadcom's stock price target, anticipating significant market share growth in AI.

Broadcom stock surges on $10B AI chip deal with OpenAI

Broadcom's stock price increased significantly after the company revealed a $10 billion order for AI chips. While the buyer was not named, reports suggest it is OpenAI. This deal marks a major step for Broadcom in custom semiconductors, offering an alternative to Nvidia's processors. The chips are for internal use and will ship in 2026. Broadcom also raised its revenue forecast for fiscal 2026, expecting over $40 billion in sales.

OpenAI projects $115 billion spending through 2029

OpenAI has informed investors that its projected spending through 2029 could reach $115 billion, an increase of about $80 billion from previous estimates. The company is developing its own data center server chips and facilities to manage cloud server rental costs. OpenAI anticipates spending over $8 billion this year, an increase of $1.5 billion from earlier forecasts. Computing costs are also expected to exceed $150 billion between 2025 and 2030.

OpenAI forecasts spending jump to $115 billion by 2029

OpenAI reportedly expects its spending to significantly increase, forecasting a total of $115 billion through 2029. This is nearly $80 billion more than previously projected. The company is developing its own data center server chips and facilities to control costs. OpenAI anticipates spending over $8 billion in 2025, with projections for spending to more than double in 2026. CEO Sam Altman has described the company as potentially the most capital-intensive startup ever.

Koah raises $5M to add ads to AI applications

Startup Koah has raised $5 million in seed funding to integrate advertising into AI applications. The company aims to monetize AI products for developers who may not be able to rely solely on subscriptions, especially for users outside the US. Koah is already serving ads in apps like Luzia and Liner, with advertisers including UpWork and Skillshare. Early partners have reported significant earnings within their first month on the platform.

Koah raises $5M to bring ads into AI apps

AI startup Koah has secured $5 million in seed funding to introduce advertising into AI applications. CEO Nic Baird believes ads are essential for global profitability of AI products, especially for apps reaching millions of users who may not pay for subscriptions. Koah is already serving ads in apps like Luzia and Liner, with advertisers such as UpWork and Skillshare. The company claims its ads are highly effective, delivering strong clickthrough rates and earnings for early partners.

Arm Holdings poised to lead next generation of smart devices

Arm Holdings is well-positioned to lead the next generation of smart devices with its focus on Edge AI. While Nvidia dominates data center AI chips, Arm's battery-efficient architecture is key for devices performing AI functions locally. Arm has partnered with major companies like Nvidia, Microsoft, and Alphabet, and is reportedly moving into designing its own chips, with Meta Platforms as a potential customer. Its system-on-chip (SoC) offerings simplify chip design and manufacturing for customers.

SoundHound AI stock: Is it a buy now?

SoundHound AI, a voice-activated conversational AI company, is experiencing triple-digit sales growth, with Q2 revenue hitting $42.7 million. The company has diversified its business through acquisitions and expects 2025 sales between $160 million and $178 million. However, SoundHound is not yet profitable, with a widening Q2 loss. Nvidia's sale of its stake earlier this year caused the stock price to drop significantly. Investors are advised to watch the stock for potential improvements in profitability.

Tempus AI shares down 2.5%

Tempus AI (NASDAQ:TEM) experienced a 2.5% stock price decrease on Friday, closing at $9.95. The company provides AI solutions for healthcare, finance, and retail. Analysts have mixed ratings on Tempus AI, citing potential growth but also concerns about its high valuation and increasing competition. Investors considering selling should evaluate the company's performance, future prospects, and market conditions, and consult a financial advisor.

Alphabet stock gains momentum after antitrust ruling

Alphabet's stock price rose 8% after a judge ruled the company can retain its Chrome browser. This ruling is seen as a victory for Alphabet's AI business, even though it must share data with rivals. Despite past concerns about its AI progress compared to competitors like OpenAI, Alphabet's core digital ad business and Google Cloud remain strong cash generators. The company has a low P/E ratio among 'Magnificent Seven' stocks, indicating potential for further growth.

OpenText AI stock poised for future growth

Canadian company OpenText is making significant moves into AI beyond its existing cloud services, including collaborations with HPE. Its Titanium X program enhances data intelligence for businesses, positioning OpenText for growth. While recent earnings showed mixed results, cloud bookings increased by 32%, driven by AI-driven solutions. The company also offers a dividend, which was recently increased by 5%. OpenText is focused on AI and cloud services, with leadership changes aimed at reinforcing its strategy.

Nvidia's reliance on two major customers raises concerns

Nvidia's revenue is increasingly dependent on two major unnamed customers, referred to as Customer A and Customer B, who accounted for 39% of its revenue in the latest quarter. While these customers are likely distributors supplying hyperscalers like Amazon and Microsoft, their significant contribution highlights a concentration risk. This reliance is common among AI chip makers, with Broadcom also depending heavily on a few key clients. Despite this, analysts believe Nvidia remains a buy due to its strong position in the AI market.

Sources

AI Artificial Intelligence Copyright Lawsuit Settlement Anthropic Claude AI Authors Books Training Data Broadcom OpenAI AI Accelerators AI Chips Custom Semiconductors Nvidia Spending Data Centers Server Chips Capital Intensive Koah Seed Funding Advertising AI Applications Monetization Arm Holdings Edge AI Battery-Efficient Smart Devices System-on-Chip (SoC) SoundHound AI Voice-Activated AI Conversational AI Sales Growth Profitability Tempus AI Healthcare AI Finance AI Retail AI Alphabet Google Cloud Digital Advertising Antitrust OpenText HPE Data Intelligence Cloud Services Cloud Bookings Dividend Customer Concentration Hyperscalers Amazon Microsoft