Ex-WSJ reporter who exposed Theranos fraud sues AI giants over alleged

Ex-WSJ reporter who exposed Theranos fraud sues AI giants over alleged

A Pulitzer Prize-winning investigative reporter whose work helped convey down Theranos is now taking over Silicon Valley’s greatest AI gamers — accusing them of looting his books to build billion-dollar chatbots.

John Carreyrou, the journalist behind the Wall Street Journal’s exposé of disgraced blood-testing startup Theranos, sued six major artificial intelligence firms Monday in California federal court docket, alleging they illegally used copyrighted books to coach their AI programs.

Carreyrou, writer of the bestselling tome “Bad Blood,” filed one single lawsuit alongside 5 other writers against Google, Elon Musk’s xAI, OpenAI, Meta Platforms, Anthropic and Perplexity.

John Carreyrou, the New York Times journalist behind the Wall Street Journal’s exposé of disgraced blood-testing startup Theranos, sued six major artificial intelligence firms Monday in California federal court docket.

The criticism accuses the firms of pirating books and feeding them into large language fashions that energy standard chatbots — without permission or compensation.

The case marks the first copyright lawsuit to call xAI as a defendant, increasing a rising authorized assault by authors and publishers over how artificial intelligence programs are educated.

Carreyrou, who’s now at the New York Times, and the other plaintiffs argue that the AI business has constructed its core technology on stolen mental property, drawing large investments and reaping income while creators obtain nothing.

A spokesperson for Perplexity said the company “doesn’t index books.”

The other defendants didn’t instantly reply to requests for remark, according to Reuters. The Post has reached out to them.

The lawsuit comes amid a wave of copyright circumstances concentrating on AI builders for scraping textual content, photographs and other works from the web to coach their fashions.

Carreyrou filed the lawsuit alongside 5 other writers against Google, Elon Musk’s xAI, OpenAI, Meta Platforms, Anthropic and Perplexity. Tada Images – inventory.adobe.com

Unlike other high-profile circumstances, Carreyrou and the other authors are intentionally steering clear of a class-action lawsuit, which might bundle claims together and permit firms to barter a single settlement.

The writers say class actions favor defendants by limiting their publicity.

The criticism accuses the firms of pirating books and feeding them into large language fashions that energy standard chatbots — without permission or compensation. TIME / TIME Person of the Year/AFP through Getty Images

“LLM companies should not be able to so easily extinguish thousands upon thousands of high-value claims at bargain-basement rates,” the criticism states.

The submitting takes direct goal at a latest settlement by which Anthropic agreed to pay $1.5 billion to settle a class-action lawsuit introduced by authors who alleged the company pirated hundreds of thousands of books for AI training.

Carreyrou and his fellow plaintiffs opted out of that deal, arguing it dramatically undervalued authors’ rights.

Carreyrou’s reporting for the Journal introduced down Theranos and its founder, Elizabeth Holmes.

According to the new criticism, class members in the Anthropic settlement will obtain “a tiny fraction (just 2%) of the Copyright Act’s statutory ceiling of $150,000” per infringed work.

The writers say that consequence illustrates why class actions fail to carry AI firms accountable.

Carreyrou has beforehand blasted Anthropic’s conduct in court docket, calling the company’s use of pirated books its “original sin” and arguing the settlement didn’t go far sufficient to discourage future misconduct.

Monday’s lawsuit was filed by attorneys at Freedman Normand Friedland, including Kyle Roche — a lawyer whom Carreyrou profiled in a 2023 New York Times article.

Carreyrou is the writer of the bestselling e book “Bad Blood.”

During a November listening to in the Anthropic class action, US District Judge William Alsup criticized a separate legislation agency co-founded by Roche for organizing authors to eschew the settlement in favor of what the choose described as “a sweeter deal.”

Roche declined to remark Monday, according to Reuters.

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