America
Project Panama: Inside Anthropic’s secret race to scan millions of physical books
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.
America
US wealthy demolish multimillion-dollar mansions for land
Wealthy buyers in the US are tearing down multimillion-dollar homes shortly after purchasing them for hundreds of millions of dollars.
According to a report by The Wall Street Journal, the trend is driven by a shortage of land in prestigious locations, particularly along coastlines.
For ultra-wealthy buyers, the prime factor has become the land’s location rather than the structure standing on it. After the acquired properties are flattened, newer, more modern homes are built on the cleared lots.
Drawing attention to the shift in the luxury real estate market, the report noted:
“The home itself, formerly the primary driver of an expensive real estate purchase, is now almost beside the point. Buyers are competing first and foremost for well-located land, situated on the ocean or a mountaintop.”
The newspaper cited moves by US billionaire William Lauder as an example. Lauder purchased the oceanfront estate of radio host Rush Limbaugh, who died in March 2023, for $155 million and had it completely demolished in July.
Lauder had previously torn down two homes situated on roughly 1.2 hectares of land along the Palm Beach coast. Having initially planned to construct his own residence on the parcel, Lauder subsequently sold the cleared plot for approximately $200 million.
Jonathan Miller, a real estate appraiser, stated that such transactions are becoming increasingly common as land prices rise.
Amid this momentum, estate agents have also begun marketing luxury homes directly as teardown lots.
Listings use artificial intelligence-generated imagery to showcase how the land would look without the structures on it.
Marketers avoid using the word “demolition” directly, resorting instead to terms such as “adaptive reuse”.
Teardown listings rise across luxury housing market
The trend is not confined to the coast and is spreading to other regions across the US.
Data from property brokerage Redfin reveals that references to demolishing buildings are becoming more frequent in sales listings.
The share of such listings exceeds 15% in the Bunker Hill Village area of Houston, while standing at 6.67% in Pimmit Hills, Virginia.
Dina Goldenteyer, a real estate agent working in Miami, remarked that serial demolitions have become more frequent because buyers no longer appreciate homes older than a decade.
Former retail executives Jamie Dooley and Christine Scott spent $3.7 million in 2020 to demolish a seaside home near Destin, Florida.
Although the couple spent five years building a modern home on the cleared site, they listed the resulting new structure with a demolition condition, citing the fact that no one wanted to buy the property as it stood.
William Paddock, an employee at the environmental consultancy WAP Sustainability, pointed to the environmental damage caused by this construction cycle.
Paddock emphasized that tearing down a home of roughly 1,000 square metres and replacing it with a new building of approximately 2,700 square metres generates a carbon footprint equivalent to the annual emissions of an average 250 American households.
America
US inflation reaches 3.7% as midterm election campaign intensifies
An uptick in September inflation as the US midterm elections approach has pushed the cost-of-living debate back to the centre of the agenda for Democrats seeking to regain control of Congress from Republicans.
Annual inflation stood at 3.7% in September, according to the Consumer Price Index published by the Bureau of Labour Statistics, with energy, petrol, and electricity costs rising on a monthly basis.
Food prices remained flat from August to September, recording a 2.5% increase compared with the same period last year.
Democrats are anchoring their election campaigns to pledges of easing the cost of living, blaming the price increases on President Donald Trump’s tariffs and the war with Iran.
Trump and Republicans, pointing to the numerous left-wing candidates who won primary elections this year, contend that the opposition has become captive to “communists” within the party.
When annual inflation stood at 2.4% in February, the US and Israel launched the Iran war on the final day of that month, and prices continued to climb throughout the conflict.
The recent acceleration has not entirely reversed the retreat from the 40-year peak of 9.1% recorded in June 2022; however, the rate has remained above the Federal Reserve’s 2% target for over five years.
Fed policymakers raised the benchmark interest rate by a quarter of a percentage point last month, citing the battle against stubborn inflation. Officials will convene again next week to consider whether to raise rates or hold them within the 3.75% to 4% target range.
Energy and fuel record sharpest increase since first month of war
In September, energy prices posted their largest monthly jump since March, the first full month of the war with Iran, climbing 20.4% year-on-year. Energy costs had risen 2.1% from July to August, after falling 1.5% from June to July and 5.7% from May to June.
Recent escalations in Iranian attacks on oil tankers in the Strait of Hormuz, alongside more frequent strikes by Ukrainian forces against Russian refineries, have strained global crude oil and refined product markets, driving up US petrol and diesel prices.
Petrol prices also recorded their sharpest monthly increase since the first month of the war, climbing 9.1% from August to September, bringing the annual increase to 35.3%.
American Automobile Association (AAA) data shows the average price of regular petrol across the US stands at $4.26 per gallon; while below the level of roughly $4.48 recorded a month ago, it remains more than $1.20 higher than a year earlier. Average gallon prices exceed $6 in California and $5 in both Washington state and Nevada.
Electricity prices rose 0.2% from August to September, offsetting the 0.2% decline between July and August, and were up 4.4% year-on-year.
Heavy power demand from new data centres is feeding through into local household electricity bills. Trump argued that companies must cover the cost of the electricity required by their data centres themselves.
In a post on Truth Social, Trump claimed that he was requiring large data centres to generate their own power and feed the surplus back into the local grid, suggesting this could bring about “a major drop” in electricity prices.
Used vehicle market posts monthly rise as food costs stabilise
The cost of food at home fell 0.1% month-on-month in September, while dining out increased 0.2%.
Egg prices dropped to $2.27 a dozen, falling roughly 35% compared with September 2025 and remaining well below the 20-year peak of $6.23 recorded in March 2025.
Ground beef prices rose roughly 2.4% compared with September 2025, but at $6.48 a pound, they remained below the 20-year high of $6.98 reached in June.
Chicken held steady at its year-earlier level of $2.06 per pound last month, having fluctuated between $2.01 and $2.09 since November 2024.
Used car and truck prices fell 1.5% compared with September 2025, but rose 0.7% month-on-month in September following 0.4% increases in both July and August.
Heather Long, chief economist at Navy Federal Credit Union, noted that the sector faces severe pressure stemming from a combination of expensive replacement parts and a shortage of skilled labour.
Speaking to The Hill, Long emphasised that every cost pressure across the market is being felt directly at local auto repair shops.
America
Anthropic posts $80.7bn loss ahead of IPO as computing costs soar
Anthropic, developer of the artificial intelligence model Claude, reported a net loss of $80.7 billion for the first six months of 2026 ending 30 June.
According to a report by The Wall Street Journal citing the company’s draft initial public offering prospectus, this recorded loss nearly doubled the $42 billion loss incurred across the entirety of 2025.
The vast majority of that enormous figure, accounting for $72 billion, stemmed from accounting-driven book-value write-downs.
In contrast, the company saw a sharp surge in revenue, with turnover in the first half of the year climbing to $16.3 billion from $1.1 billion in the same period of the prior year.
During this period, Anthropic spent approximately $9 billion on computing power and infrastructure needs, surpassing in just six months the $7.3 billion spent across the whole of 2025.
The company has commitments to pay roughly $450 billion over the next seven to 10 years under cloud service contracts.
Under these obligations, contracts are planned for $111 billion with Google Cloud, $110 billion with Amazon Web Services, and $31 billion with Microsoft.
Anthropic will also spend up to $86 billion by 2033 and 2034, respectively, to lease Nvidia chips through smaller AI-focused cloud providers Nscale and Lambda.
The company could spend an additional $750 billion in the coming years to expand its computing capacity.
Roughly a third of the draft IPO prospectus was dedicated directly to risk factors.
The document highlighted the possibility that models could cause tangible real-world harm, noting that artificial intelligence could exhibit a “self-preservation” tendency and produce responses resembling “blackmail”.
Anthropic warned that the scale of damage caused by an AI-driven “catastrophic event” could render insuring against such risks impossible.
According to market expectations, Anthropic’s IPO could rank among the largest transactions in history, potentially surpassing SpaceX’s record.
Following the market debut, the company’s market valuation is projected to reach up to $2 trillion.
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