As one legal analyst noted, the settlement may be seen by the tech industry as simply “a price of conducting business in a fiercely competitive space”—a cost of doing business rather than a genuine deterrent. Meanwhile, the fair-use ruling on training means Anthropic retains the legal right to train on copyrighted works, as long as it doesn’t pirate them to do so.

Anthropic is accusing three Chinese AI companies of setting up more than 24,000 fake accounts with its Claude AI model to improve their own models.

The labs — DeepSeek, Moonshot AI, and MiniMax — allegedly generated more than 16 million exchanges with Claude through those accounts using a technique called “distillation.” Anthropic said the labs “targeted Claude’s most differentiated capabilities: agentic reasoning, tool use, and coding.”

The accusations come amid debates over how strictly to enforce export controls on advanced AI chips, a policy aimed at curbing China’s AI development.