Alexandr Wang, co-founder and AI chief of AI company Anthropic, has announced the upcoming launch of a new advanced AI model, set to debut soon alongside a second large language model named Avocado. The announcement comes on the heels of a major legal victory for the company, as a federal judge ruled that training AI models on legally purchased books without authors’ permission constitutes fair use under U.S. copyright law. This decision, issued by Judge William Alsup of the Northern District of California, is a pivotal moment for the AI industry, offering a potential legal framework for how generative AI companies can use copyrighted materials to train their models. The ruling specifically upheld Anthropic’s use of physical books it purchased, scanned, and digitized for training its Claude AI family. Judge Alsup emphasized the transformative nature of the process, comparing it to how humans learn to write by reading widely. He stated that the AI’s output does not replicate the original works or an author’s unique style, but instead synthesizes information to produce new content. “Like any reader aspiring to be a writer, Anthropic’s LLMs trained upon works not to race ahead and replicate or supplant them, but to turn a hard corner and create something different,” the judge wrote. This interpretation of fair use could set a significant precedent for other AI companies facing similar lawsuits. However, the ruling was not a complete win for Anthropic. Judge Alsup also found that the company’s practice of downloading millions of pirated books from the internet to build a centralized digital library was not protected under fair use. The court will hold a separate trial to determine damages related to these unauthorized downloads, with the potential for significant financial penalties. The judge noted that buying a book after stealing it does not erase the initial infringement, though it may affect the final damages. The new model, set to launch soon, and the Avocado LLM are expected to build on this foundation, offering improved performance, better reasoning, and more natural language understanding. While details remain under wraps, the naming of the second model as Avocado—known for its rich, complex flavor and high nutritional value—may hint at a focus on depth, richness, and advanced capabilities. The company has not disclosed specific use cases, but the models are likely to be integrated into Anthropic’s existing product suite, including the Claude chatbot, which competes with models like OpenAI’s GPT and Google’s Gemini. The legal and technical developments come amid a wave of lawsuits from authors, artists, and publishers who claim their works are being used without consent or compensation. The New York Times, for example, has sued OpenAI and Microsoft over the use of its articles to train AI systems. In contrast, some publishers are now seeking licensing deals with AI firms to monetize their content legally. Anthropic has positioned itself as a leader in AI safety and responsible development. Founded by former OpenAI executives, the company has emphasized ethical AI practices and transparency. Its recent legal win strengthens its stance, but the ongoing trial over pirated content remains a critical risk. As AI continues to evolve, the balance between innovation and copyright protection will remain a central issue. This ruling, while limited in scope, offers a significant legal boost to the industry and may influence how future cases are decided. With the new models on the horizon, Anthropic is poised to play a key role in shaping the next generation of AI.