Analysis of the Impact of AI Copyright Litigation Risks on Investments in the Artificial Intelligence Sector

On December 22, 2025, a group of writers led by Pulitzer Prize winners filed a copyright lawsuit against six AI companies including OpenAI, Anthropic, xAI, Google, Meta, and Perplexity AI, accusing them of obtaining writers’ works from pirated platforms like LibGen and Z-Library to train large language models (LLMs), which constitutes ‘deliberate theft’ [1][4]. The plaintiffs include writers who were dissatisfied with Anthropic’s $1.5 billion settlement in 2025, arguing that the settlement did not hold AI companies fully accountable for using stolen content to train models [1][4].

Looking at market data after the lawsuit: Google (GOOG) announced the acquisition of Intersect for $4.75 billion to accelerate data center construction for AI and cloud businesses, demonstrating its confidence in long-term AI deployment [5]; although Meta (META) faces an order from Italy’s antitrust authority, this incident is unrelated to the current copyright lawsuit [6][7]; Microsoft (MSFT), a major investor in OpenAI, still has its stock maintained at an ‘Outperform’ rating by Wedbush with a target price of $625 [8]. Overall, the market’s short-term reaction to this lawsuit is relatively muted, with no large-scale bearish sentiment toward related AI concept stocks yet.

1. The Lawsuit Has Industry Representativeness and Continuing Demands
   : This lawsuit involves six leading AI companies, and the plaintiffs are writers who opted out of previous settlement agreements, indicating that core demands regarding AI copyright issues (such as the legality of training data and compensation standards) have not been fully resolved, and more similar lawsuits may emerge in the future.
2. Mismatch Between Short-Term Market Sentiment and Long-Term Risks
   : In the short term, the market still focuses on the business expansion and technical layout of AI companies, and does not regard copyright lawsuits as core risks. However, in the long run, if the lawsuit results are unfavorable to AI companies, the increase in copyright licensing costs will directly affect their profitability and valuation models.
3. Investors Still Have Confidence in the Long-Term Value of AI
   : Despite the copyright lawsuit risks, institutions still maintain optimistic ratings on core companies in the AI industry chain like Microsoft, reflecting the market’s recognition of the long-term development potential of AI technology. The copyright lawsuit risk has not yet changed the long-term investment logic of the AI sector.

1. Long-term Increase in Copyright Costs
   : If the lawsuit is won, AI companies may need to pay high copyright fees for training data, squeezing profit margins;
2. Industry-wide Litigation Wave
   : This lawsuit may trigger more authors or copyright holders to sue AI companies, increasing industry compliance risks;
3. Adjustment of Valuation Models
   : The uncertainty of copyright costs may lead investors to re-evaluate the valuation logic of AI companies, affecting stock prices.

1. Development of Compliant Training Data Markets
   : AI companies may accelerate the layout of legal training data resources, promoting the development of related markets;
2. Technological Innovation Drives Compliance
   : Advances in AI technologies (such as data desensitization, watermarking technology, etc.) may help companies reduce copyright risks;
3. Establishment of Industry Norms
   : Lawsuits may promote the establishment of clearer copyright rules in the AI industry, facilitating long-term healthy development of the industry.

This AI copyright lawsuit involves multiple leading AI companies, with the core accusation being the use of pirated works to train LLMs. The short-term market reaction is muted, with no large-scale fluctuations in concept stocks like Google and Meta. However, in the long run, attention needs to be paid to the potential impact of rising copyright costs on companies’ profitability and valuation. Investors should objectively assess the legal risks of the lawsuit and the long-term development potential of the AI industry, and make decisions based on company fundamentals and industry dynamics.

[1] TechCrunch - John Carreyrou and other authors bring new lawsuit against six major AI companies
[4] Publishers Weekly - Authors File New Lawsuit Against AI Companies Seeking More Money
[5] Verdict - Alphabet to acquire Intersect for $4.75bn in AI push
[6] Seeking Alpha - Italy’s antitrust body orders Meta to allow rival AI chatbots on WhatsApp
[7] TechMeme - Italy’s antitrust authority orders Meta to suspend contractual terms that bar rival AI chatbots from WhatsApp; Meta calls the decision “fundamentally flawed”
[8] Yahoo Finance - Wedbush Calls Microsoft (MSFT) a Core AI Winner With $625 Price Target