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Project Panama: Inside Anthropic’s secret race to scan millions of physical books

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In early 2024, the artificial intelligence startup Anthropic initiated a clandestine operation dubbed “Project Panama,” an effort to “destructively scan” nearly every book in existence.

According to court filings obtained by The Washington Post, the company spent tens of millions of dollars over the course of a year to purchase millions of books and physically dismantle them by cutting off their spines. The pages were then scanned to feed vast quantities of information into the AI models powering products like the popular chatbot Claude.

The previously undisclosed details of Project Panama were revealed in more than 4,000 pages of documents related to a copyright lawsuit brought by authors against Anthropic, which investors recently valued at $183 billion. While the company agreed to a $1.5 billion settlement in August to resolve the case, a district judge’s decision last week to unseal a series of related documents has provided a clearer picture of Anthropic’s aggressive pursuit of literary data.

These new filings, alongside documents submitted in other copyright cases against AI firms, illustrate the extraordinary lengths to which technology giants—including Anthropic, Meta, Google, and OpenAI—have gone to acquire massive troves of data for “training” their software. The Anthropic litigation is part of a broader wave of legal action by authors, artists, photographers, and news organizations who claim their creative works are being exploited.

Court records reveal that these companies view books as a premier prize. In a January 2023 document, one of Anthropic’s co-founders suggested that training AI models on books would teach them “to write well,” rather than merely mimicking “low-quality internet slang.” Similarly, a 2024 internal Meta email described access to digital book archives as “essential” for staying competitive with AI rivals.

However, the records also show that these companies found it “impractical” to obtain direct permission from publishers and authors. Instead, Anthropic, Meta, and others devised ways to acquire books in bulk without the authors’ knowledge. According to court records, these methods included downloading pirated copies.

When Anthropic launched Project Panama to purchase and scan physical books, it turned to a Silicon Valley veteran. The company hired Tom Turvey, a former Google executive who two decades ago helped spearhead the famous but legally controversial Google Books project.

Anthropic initially considered sourcing books from libraries or iconic second-hand bookstores like New York City’s Strand, famous for its “18 miles” of new and used titles. A March 2024 document detailing an Anthropic content acquisition meeting noted that the store “was interested in providing second-hand books.” Documents also show Anthropic employees discussed approaching US libraries, including the New York Public Library or even “a chronically underfunded new library.”

It remains unclear which of these proposals, if any, were executed. A spokesperson for Strand, reached via email, stated that the bookstore did not sell any books to Anthropic.

Ultimately, documents indicate that Anthropic purchased millions of books, often in batches of tens of thousands, relying on used-book retailers such as Better World Books and the UK-based World of Books. While the final number of scanned books and the total cost were redacted in the documents, a project proposal from a vendor working with Anthropic specified that the AI firm was seeking a “document scanning service provider experienced in converting 500,000 to two million books over a six-month period.”

The document explained that the scanning firm’s “hydraulic-driven cutting machine” would “neatly cut” the books, and the pages would then be scanned using “high-speed, high-quality, production-level scanners.” Finally, the vendor would arrange a schedule with a “recycling company to collect the completed books.”

Internal messages show that Meta employees repeatedly expressed concerns that downloading millions of books without permission would violate copyright law. In December 2023, an internal email submitted in the copyright case against Meta noted that the practice was approved after being “communicated to MZ,” an apparent reference to CEO Mark Zuckerberg.

In a recently released legal filing, Anthropic revealed that co-founder Ben Mann personally spent 11 days in June 2021 downloading fiction and non-fiction titles from “LibGen,” a well-known “shadow library” hosting pirated books and other copyrighted content. A screenshot of a web browser included in the files showed Mann using file-sharing software to download the data.

A year later, in July 2022, Mann welcomed the launch of a new website called Pirate Library Mirror, which claimed to host a massive database of books and stated, “we are intentionally violating copyright law in most countries.” Mann sent a link to the site to other Anthropic employees with the message: “just in time!!!”

In legal filings, Anthropic argued that it did not train a commercial AI model for profit using LibGen data and that it never used Pirate Library Mirror to train any completed AI model.

Ed Newton-Rex, a former AI executive and music composer who now leads a non-profit advocating for creators’ rights, said these revelations underscore that AI companies owe creators far more than they have paid to date. “We urgently need a reset in the AI industry so that creators start getting paid fairly for the vital contributions they make,” he said.

Google, Microsoft, and ChatGPT-maker OpenAI face similar copyright lawsuits from authors. While many of these cases remain pending, James Grimmelmann, a professor of digital and information law at Cornell Tech, noted that the legal questions they raise remain unresolved.

However, in two separate rulings, judges determined that tech companies’ use of books to train AI models without author or publisher permission might be legal under the “fair use” doctrine of copyright law. In June, District Judge William Alsup ruled that Anthropic had the right to use books for training because they processed the works in a “transformative” manner. The judge likened the AI training process to teachers “teaching school children how to write well.”

That same month, District Judge Vince Chhabria ruled in the Meta case that authors failed to prove the company’s AI models could harm the sales of their books.

Nevertheless, companies may still face legal jeopardy regarding how they acquired the books. In the Anthropic case, while the scanning project was accepted, the judge ruled that the company may have violated authors’ copyrights by downloading millions of pirated books for free before launching Project Panama. Alsup granted class-action status to authors whose works were included in two shadow libraries that Anthropic downloaded and stored for future use.

Rather than go to trial, Anthropic agreed to pay publishers and authors $1.5 billion without admitting wrongdoing. Authors whose books were downloaded can claim a share of the settlement, estimated at approximately $3,000 per book.

Aparna Sridhar, Anthropic’s deputy general counsel, stated in an email to The Washington Post: “This case has been resolved, but the court’s landmark June 2025 ruling remains valid. Judge Alsup argued that AI training is ‘fundamentally transformative’: Anthropic’s AI models were trained ‘not to copy or replace works, but to get over a difficult hump and create something different.’ What we settled on was how some materials were obtained, not whether we could use them to develop AI models.”

Documents released in the Meta lawsuit suggest that the social media giant’s employees were equally data-hungry and willing to take legal risks to obtain it. While Judge Chhabria sided with Meta on the use of books for training, he allowed authors to proceed with claims that Meta illegally distributed copies of pirated books. The plaintiffs are seeking class-action status for these claims in the Northern District of California.

In that case, authors alleged that Meta’s senior executives considered purchasing books for training but instead opted to download millions of books for free from “torrent” platforms that facilitate online piracy. Internal documents, some previously reported, show Meta employees expressing concerns that their actions were risky or wrong and discussing how to hide their tracks.

One engineer wrote in 2023, “Downloading torrents from a company laptop doesn’t feel right.” The same employee later voiced concern to the legal team that using torrent sites might require sharing pirated works with others, which “might not be legally appropriate.”

A December 2023 email clearly stated that the use of LibGen was approved after Zuckerberg was notified. “After prior notification to MZ, GenAI’s use of LibGen for Llama 3 was approved… with a series of agreed-upon mitigating measures,” the email read, before listing legal and political risks. It noted that media reports suggesting the use of a known pirate dataset like LibGen could “weaken our negotiating position with regulators on these issues.”

By April 2024, internal correspondence showed the company moving to download LibGen and other shadow libraries. Chat logs show one employee asking another why they were using servers rented from Amazon for torrenting instead of Facebook-owned servers. The answer: “to avoid the risk of the activity being traced back to the company.”

In a filing last month, Meta’s lawyers wrote that the company “denies distributing the plaintiffs’ works while downloading training data using torrents.”

In a separate 2023 case, authors accused OpenAI and Microsoft of violating copyright law by using books for AI training. OpenAI, where Mann and Anthropic CEO Dario Amodei worked before founding their own firm, admitted to downloading LibGen but told the court it deleted the files before the launch of ChatGPT.

Justin A. Nelson, an attorney at Susman Godfrey LLP representing authors in both the OpenAI and Anthropic cases, said: “OpenAI fired the opening shot that led to the widespread piracy by AI companies and the exploitation of all human expression.”

Earlier this month, two major publishers applied to join a group of authors and illustrators in a 2023 copyright lawsuit against Google.

Grimmelmann, the Cornell Tech law professor, observed that AI companies “led themselves into a delusion” regarding the use of copyrighted data. The breakthroughs behind tools like ChatGPT began in academic research, where the use of copyrighted material for training is widely accepted, but researchers continued the practice even as AI models became commercialized.

“By the time the tension became apparent, they had invested heavily in incorporating copyrighted data into their workflows and were in a fast-paced, high-stakes competition to launch newer and better models,” Grimmelmann said.

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US Senate panel seeks records in Trump-linked crypto investigation

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Richard Blumenthal, the ranking Democrat on the US Senate Permanent Subcommittee on Investigations (PSI), has requested documents from cryptocurrency exchange Binance, Tether, and crypto projects linked to President Donald Trump as part of inquiries into potential financial irregularities and conflicts of interest.

The documents were requested to be submitted by 4 January 2027.

Senators warned that they would resort to compulsory measures if the request was refused.

Entities sent document requests include World Liberty Financial and Fight Fight Fight LLC, both linked to President Trump’s family.

Blumenthal began examining the activities of these entities in May 2025 following reports that they may have engaged in transactions with foreigners under federal criminal investigation, attracted investments from foreign governments, and violated public ethics rules.

Notably, in 2026, it emerged that individuals close to the Abu Dhabi royal family had signed an agreement with the Trump family to purchase 49% of the shares in World Liberty Financial for $500 million.

The company, founded in September 2024 by the US President and his sons, launched a token called WLFI.

According to official disclosures, Trump made $800 million from this token alone.

Conversely, crypto analytics firm Nansen calculated, by tracking 1.48 million crypto wallets, that approximately two-thirds of those who invested in the token after its launch in January 2025 incurred losses.

While many retail investors spent several thousand dollars on purchases, the largest investors poured in millions of dollars.

Trump also launched his own memecoin, TRUMP, on 17 January 2025, prior to his inauguration.

Rising 10.6-fold in value within three days, the cryptocurrency’s market capitalisation reached $15 billion at its peak.

However, after those three days, the price entered a downturn, plunging by 97%.

Trump reported in his financial disclosure that he earned $635 million in income from sales of these memecoins.

In July 2026, Blumenthal held public hearings on the family crypto projects from which the President made $1.4 billion.

The losses suffered by TRUMP memecoin investors were also addressed during these hearings.

Cryptocurrency exchange Binance and Tether, which issues the largest stablecoin, USDT, are under scrutiny over their dealings with the Trump administration.

Lawmakers suspected conflicts of interest stemming from the exchange’s collaboration with World Liberty Financial.

Previously, a group of senators had demanded an inquiry into the terms of the presidential pardon granted to Binance founder Changpeng Zhao.

Separately, The New York Times reported that the United Arab Emirates (UAE) gaining access to American artificial intelligence chips coincided with a $2 billion investment by a UAE entity into Binance using USD1, a stablecoin issued by World Liberty Financial.

While this deal rapidly expanded the volume of tokens in circulation, it enabled Trump’s company to generate revenue from interest on government bonds where USD1 reserves were held.

Trump, for his part, described the report as slander.

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US credit card debt hits record $1.29 trillion, New York Fed reports

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Americans’ credit card debt reached a record $1.29 trillion in the third quarter, according to a new report published by the New York Fed.

Falling behind on credit card payments can trap struggling households in a cycle of fees, credit score downgrades, and increasingly expensive borrowing.

Although delinquency rates across the country have shown improvement, the latest figures indicate that financial distress is concentrated in lower-income communities.

Consumer credit card balances rose by $22 billion in the third quarter, representing an increase of 1.7%. This figure is $52 billion higher than it was a year earlier.

The figures are not adjusted for inflation, which may mean that part of the increase reflects rising prices rather than more borrowing in real terms.

Total household debt, which includes mortgages, student loans, and auto loans, rose by $334 billion in the third quarter to reach a record $19.1 trillion.

This total represents an increase of $5 trillion compared to 2019, just before the pandemic.

The volume of credit card balances falling into serious delinquency is declining, indicating some improvement in Americans’ ability to make their payments on time.

The rate of credit card debt transitioning into serious delinquency fell to 6.9% in the third quarter. However, this rate remains distinctly higher than the 5.2% recorded prior to the pandemic.

Americans living in lower-income neighbourhoods are facing greater difficulty in keeping up with their credit card payments compared to more affluent groups, according to a separate report published by the New York Fed on Tuesday.

Delinquency rates across all neighbourhood income tiers remain above pre-pandemic levels, while the gap between the wealthiest and poorest areas has widened since 2022.

In the lowest-income neighbourhoods, 10.3% of credit card balances transitioned into serious delinquency over the past year.

This is more than double the 4.4% rate observed in the wealthiest neighbourhoods.

The average credit card balance per borrower now stands at $6,678, according to TransUnion’s third-quarter analysis report.

Among borrowers under the age of 30, the rate of credit card debt falling at least 90 days delinquent reached the highest level, according to the Fed’s report.

Democrats won the midterm elections promising to bring down prices, but delivering relief that voters can genuinely feel in their household budgets will be a difficult target to achieve.

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Mamdani quietly asks Trump to release detained immigrants

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New York City Mayor Zohran Mamdani is using his rapport with US President Donald Trump to secure the release of selected detained immigrants.

According to reporting by Politico, Mamdani persuaded Trump during their second White House meeting in February to free a university student who had been detained that day by ICE.

The outcome served as validation for Mamdani, who pointed to the release of the Columbia University senior as proof that his surprisingly cordial relationship with Trump could produce tangible results for New Yorkers.

Mamdani subsequently continued to seek similar immigration-related interventions from the Republican president.

Since that February meeting, Mamdani and his aides have quietly forwarded the names of approximately two dozen immigrant New Yorkers held in ICE custody to Trump’s team, asking the president to order their release.

Two sources familiar with the matter said Mamdani most recently shared names of detained immigrants during a September meeting with Trump at Gracie Mansion.

The sources said the individuals in question had no serious criminal records, though they declined to disclose their identities, citing safety concerns.

According to Politico, these ongoing efforts regarding detained immigrants indicate Mamdani’s belief that he can leverage his rapport with Trump to advance causes the mercurial president might not ordinarily support.

Mamdani’s decision not to disclose these continued appeals publicly suggests an inclination to keep his interventions private to improve their chances of success.

Yet it remains unclear whether any immigrant besides Columbia University student Elmina Aghayeva has actually been released as a result of these efforts, and concern is mounting within City Hall that the window for securing such releases may be closing.

Mamdani’s aides working on the releases, including his Chief of Staff Elle Bisgaard-Church, communicated primarily with Trump’s White House Chief of Staff Susie Wiles, according to people familiar with the matter.

Last week, Trump replaced Wiles with Stephen Miller, the architect of the administration’s most hardline immigration proposals and one of the loudest internal voices urging the president to pursue a mass deportation agenda in his second term.

A person familiar with the Mamdani administration’s thinking said the mayor’s team views it as unlikely that Miller will continue cooperating in the manner Wiles did, given his stance on immigration.

Mamdani spokesperson Dora Pekec declined to comment on internal concerns regarding Miller and did not provide details about the immigrants whose release the mayor had requested.

Pekec noted, however, that Mamdani has “consistently advocated directly on behalf of New Yorkers in his calls and meetings with the president.”

Murad Awawdeh, a close Mamdani ally and president and CEO of the New York Immigration Coalition, said the mayor’s team should not halt engagement with the Trump administration on immigration matters because of Miller’s promotion:

“Stephen Miller is a cruel individual who has spent his career attacking immigrants, but he is not the president; Donald Trump is, and this is his deportation agenda. New York expects the president to work with the mayor to serve this city and end the terror in our communities. Miller’s promotion changes none of that.”

Mamdani’s warm dynamic with Trump has confounded both allies and critics.

During last year’s New York mayoral election, Trump referred to Mamdani as a “communist lunatic” and threatened to have him arrested.

In turn, the 35-year-old democratic socialist branded the president a “fascist” and pledged to fight him relentlessly if elected mayor.

Yet that animosity fell away late last year during their first White House meeting, where an amicable tone prevailed.

The thaw culminated in September at Gracie Mansion, where Trump said Mamdani had “great potential” to be a “terrific mayor.”

Mamdani returned the compliment by noting that the president had “built quite a bit of housing in our city.”

Despite the polite exchange, questions remain over how much substantive progress Mamdani can genuinely secure through Trump, including on immigration.

To date, Aghayeva’s release stands as one of the few concrete concessions Mamdani has obtained from Trump.

Aides on both sides are also discussing a multi-billion-dollar federally backed housing initiative in Queens, and last month Mamdani used his channel to Trump to help secure a temporary visa for a Ghanaian woman whose son was shot and killed in the Bronx.

Beyond those instances, few tangible results have emerged, though Trump’s decision not to enact punitive measures against New York is viewed by Mamdani’s allies as a win for the city.

Trump’s political standing is widely seen as weakened following the Republican Party’s loss of both houses of Congress in elections last Tuesday.

How this political shift will affect Trump’s willingness to engage with ideological adversaries such as Mamdani remains uncertain.

Miller’s appointment as chief of staff appears to signal little presidential interest in moderation, particularly on immigration policy.

Even so, the mayor said last week that he does not intend to stop seeking Trump’s assistance, despite “fierce” policy disagreements.

“We have found an area of common interest in the well-being of New York City, and as long as that can deliver for our city, I’m going to keep that door open,” Mamdani told Politico on Friday in Puerto Rico.

Mamdani and other elected officials from New York had gathered in Puerto Rico for the annual Somos political conference.

Two days later, in an interview on Fox News, a network Trump is known to watch regularly, Mamdani described a “productive relationship” with the president, saying the two text and speak by phone frequently:

“Through those conversations, we were able to get a New Yorker out of ICE detention. We were able to secure a visa for a grieving mother who would have otherwise had to watch her son’s funeral from thousands of miles away. What that tells me is: My job is to deliver for New Yorkers, and I have to work with whoever has the power to do that, wherever they may be.”

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