Profiting from Anthropic's $1.5 Billion Move

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0:40At National Lewis University, our business programs are designed to fit your goals, your schedule, and your future with flexible options, expert faculty, and career-focused learning. Join us at an upcoming open house and discover where a business degree can take you. NLU means business. Visit nl.edu to learn more and register today. Welcome back to the podcast. we have big news today regarding the Anthropoc settlement with authors. So a judge has approved a$1.5 billion settlement, which is crazy news, especially, and I would say good news for those of us who create content and write things, create things.

1:21The data was scraped from Anthropoc without the author's approval or without them purchasing the actual material. So that's where the, We're going to get all into the copyright and fair use questions with AI today. Before we do that, Jayden, why don't you tell them about our school community? Yes. Every week we post a bonus live stream where we break down how we're growing and scaling our businesses using AI tools. And this week we did a really cool video where we actually showed how Jamie and I both have set up directory websites. So these are websites that show for me, I have one called podcaststudio.com and it's every podcast studio in America.

2:00It's a directory website. Jamie has just started one for bins that do liquidation bins. So anyways, there's a lot of opportunities to make money when whether you do rank and rent, or whether you're doing just like an Airbnb style for any niche industry, we break down how we are able to set those up all of our strategies in the school community, if you want to see that we also have, you know, over 100 videos that we've recorded over the last couple of years that break down all of the AI tools, all of the AI strategies, all of the revenue numbers, all of the stuff we don't share publicly. It's all on the school community and it is free to join.

2:34You get five of these bonus videos for free of the hundred. It's$19 a month if you want to get the full library, but it's free to join for the rest of the month. And we have over 500 members. So we'd love for you to go check it out. It won't be free forever, but if you've ever been interested in joining, I would say go check it out. Now would be the time to do it. Okay. Let's get in what's going on with Anthropic. I'm really excited about this story for a number of different reasons. We've been seeing this, this, like this story has been going on for a long time, but it feels like the final approval has just happened.

3:05This by the way, is the largest copyright payout in us history. Um, and it's interesting because I think honestly, it's a win for AI companies and it's a win for, uh, sure. The people that got, you know, that are going to get a payout from this. I don't think the payouts are massive, by the way, because I have a friend, Connor Grannon. He is an author, New York Times bestseller of a book called, I think, Little Princes. And his book is, you know, was included in this original issue, which basically the original issue is that Anthropoc went and they scraped every book that exists and not just scraped it, they actually used, they basically used like the quote unquote dark web or whatever, but they really just used a pirating site to go download every book.

3:49There's a giant data set of every book. And they use that in one of the earlier models of Claude. Now, if you remember Claude in the early days, I remember this. Using Claude versus ChatGPT, Claude just had a way better voice, way better tone. It was way better for writing. All the authors I knew, ironically, were telling me, I love Claude. It sounds so much more realistic, so much better. And the reason was because they pirated every book in the world. So because of that particular thing and the fact that they pirated them all. That's why they're paying this$1.5 billion. What's interesting that happens in this lawsuit though, is that after they pirated them all, Anthropic went and actually purchased physical copies of millions of books.

4:29And they used a robot to rip the cover off the book and then open the book up, flip the page, scan it, flip the page, scan it, flip the page, scan it. And they manually had like basically a robot scan every page of every book that they had physically purchased. And that data set is allowed. So in this lawsuit, basically, you can't go pirate the PDFs of everything. But if you go buy a physical book, and you go scan it in yourself, you can use it in the data set, because it would be the same as if I was, you know, just a random person that was like, hey, I want to learn about physics, I went and bought a physics book.

5:00And then I wrote an article about it. Like, yes, I'm using my source material from this physics textbook. But I'm changing, I'm adding my own, you know, thing to it. So anyways, that's where this lawsuit students at right now. I'm really excited to see where this goes. Yeah. So it looks like this is a really interesting fact is that the payout is going to be approximately$3 ,000 per work across an estimated 500 ,000 work. So that to me doesn't seem like every book in the world. There's obviously a lot more books than that, 500 ,000. So I wonder which ones qualified for the settlement and which ones don't, I'm guessing, or I wonder if the ones that they did purchase and then have the robot scan through, if those were excluded from the settlement.

5:50That would be an interesting fact to know. But I think this is a really important settlement and ruling for a lot of different reasons and other forms of creation and writing and things like that as well. So, Jane, how do you think this applies to audio or video moving forward in the future? Oh, yeah, that's what I'm the most excited about. For anyone that knows, I've actually just got my website up. I have a audio licensing company that I'm starting and it's called fiund.com, F-I-U-N-D. So if you have any data set, like if you're a podcaster or if you even have video data sets, if you're like a YouTuber, I'm collecting licensed data from podcasters and YouTubers to sell to a lot of these AI companies.

6:39So like 11 Labs, Microsoft, Google. Last month, I did a deal where I sold some Microsoft or some podcast data that went to Microsoft. And so, yeah, I'm basically collecting it. I pay out a royalty to the original creator. And none of the content that is sold that I'm selling gets used for like a vocal training or like a voice clone or anything like that. It's all just used for general purpose AI model training. So this is a huge industry that I'm getting really into. And so when I see this deal, I'm pretty excited because number one, it's like, you know, it's holding Anthropic accountable. If you do something shady, you're going to get punished.

7:15It's$3 ,000 for about 500 ,000 authors that were affected in this. But the second thing is like, I hope this discourages basically most companies from just going and doing the same thing. So they're going to want to go pay for licensing. And so now I have a data licensing company. My one caveat to all of this is that the Chinese models are not doing this. You probably all recently saw, and we'll probably do a whole other episode on Kimi K3 or whatever, the new Chinese open, whatever, not really open source, but open model, open weight, I think it's called, model that came out, and it's surpassing Anthropic in certain use cases.

7:51And the thing is, none of these Chinese models are going to pay for licensing. They're all scraping the entire internet. They're scraping every song, every podcast, every article, every book. They definitely did exactly what Anthropik is doing, but they're in China. So they're basically protected because they're not going to go after the copyright. So it's kind of tricky because they have a bit of an unfair advantage in that regard. But I still think, you know, if we're holding the American companies accountable, like Anthropik and OpenAI have lots of money. They should be able to license this all the right way.

8:18And so, yeah, I'm excited to see where this all goes. I also recently found out that Suno had illegally basically scraped all music and about, I think, got like 100 ,000 podcasts and use that in their last model, they're paying out a settlement and a fine and they're retiring the model that was trained for that. And they're releasing a new model that has licensed data. So these companies, even if they did something shady in the past, they see this, they know they got to fix it. They're probably all going to pay fines. The fines might be as much as the licensed data. So they're all licensing real data that they're allowed to use and retraining their models with it.

8:53And so there's a ton of opportunity for selling data now that is licensed. Yeah, I mean, I think moving forward, you know, there was, back in the day, it was everything went from CDs and physical copies of things to digital streaming. And everyone was scared about how, how are these artists going to make money now? Because, you know, there's no more physical copies of CDs. And so then, you know, Spotify came up with a solution or I don't know if it was Spotify, maybe it was someone else, but Spotify would be the result of that where artists get paid per stream and then ad revenue helps pay them.

9:29So it kind of changed formats of how artists were paid, but they still are getting paid. So I think this is kind of like the next level of that when it comes to AI and training data and making things legitimate from a training perspective. So all exciting stuff. There's lots of opportunity to make money. Jayden, what would you leave the listener with as what should they be thinking about moving forward when it comes to this? Is there ways they can get a piece of the pie? Yes. Well, what I'm currently doing, and I honestly think anyone could do this, is look at any sort of data or industry that you might be adjacent to or connected with and think about ways that you can start consolidating data into basically create your own data set and there will be marketplaces and ways, and I'll talk about it a lot on the podcast.

10:18So invest some time and energy into this. I'm doing this along the journey and there's a ton like a ton of money in it. One that's really interesting is like motion capture. There's these companies that will like pay a cleaner to wear a little camera on a hat while they go clean a house. So think of places and ways to capture data. And, you know, even if you just know a bunch of musicians or, you know, a bunch of YouTubers or, you know, a bunch of podcasters or, you know, a bunch of bloggers consolidate or find it basically build networks where you consolidate this data into places that can be sold.

10:52So anyways, that's what I'd say to think about if you want to make money from this industry. Guys, thank you so much for tuning into the podcast. If you want to get the breakdown of how we roll out these businesses and how we're actually making money from it all, go check out the school community. It's a link in the description. We'll catch you guys all in the next episode. Moto Casino, American Social Casino. Welcome to Moto Casino, where the excitement never ends. with thousands of the hottest free-to-play social casino games, fastest payouts, and the best promotions in the industry. No tricks or gimmicks.

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