AI startup Anthropic is facing a potentially massive legal challenge after a San Francisco federal court ruling that could subject the company to billions, possibly up to $750 billion, in copyright infringement damages.

The lawsuit centers on how AI models, such as those developed by Anthropic, may have been trained on copyrighted data without appropriate licenses.If upheld, the case could set a precedent with broad implications for the generative AI industry, raising urgent questions around model training practices, data rights, and AI accountability.

It stands as one of the most financially consequential lawsuits in GenAI history.