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Investing.com-- OpenAI and Anthropic are considering using investor funds to settle potential claims from several multibillion-dollar lawsuits, the Financial Times reported on Wednesday.
The two may face resistance from insurers over providing comprehensive coverage for the legal risks associated with artificial intelligence, the FT reported, citing insurance professionals and people familiar with the policies.
OpenAI has considered putting aside investor funding to expand its insurance coverage, the FT reported, citing two people with knowledge of the matter.
The report added that OpenAI had discussed setting up a “captive” insurance vehicle, a method commonly used by big companies to manage emerging risks.
OpenAI has coverage for up to $300 million for emerging AI risks from major insurance broker Aon, the FT reported, adding that its coverage fell well short of potential losses from major legal claims.
OpenAI currently faces lawsuits from the New York Times (NYSE:NYT) and other authors who claim their content was used to train AI models without their consent. The startup is also being sued for wrongful death by the parents of a 16-year-old who died by suicide after allegedly discussing methods with OpenAI’s ChatGPT tool.
Anthropic is using part of its own funds to settle a $1.5 billion class-action lawsuit with authors over its alleged use of pirated books to train AI models, the FT report said.
Both companies raised tens of billions of dollars this year, with OpenAI receiving funding commitments from SoftBank Group Corp. (TYO:9984) and NVIDIA Corporation (NASDAQ:NVDA). Microsoft Corporation (NASDAQ:MSFT) was the biggest backer of the AI firm since 2019, but was recently seen pulling back on its funding amid disagreements over OpenAI’s shift to a for-profit organization.
Anthropic is backed by several major tech companies, including Amazon.com Inc (NASDAQ:AMZN) and Alphabet Inc (NASDAQ:GOOGL).