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Beyond

AI giants face lawsuit over alleged slowdown pact

Four of the biggest names in artificial intelligence, Anthropic, OpenAI, SpaceXAI and Google,  are facing an antitrust lawsuit in the United States over allegations that they agreed to slow the pace of AI development.

The lawsuit, filed in the US District Court for the Northern District of California, was brought by four people who pay for ChatGPT, Claude, Grok or Gemini. They are seeking to represent a wider group of paid subscribers across the country.

The case is a growing debate inside the AI industry: how quickly should increasingly powerful AI systems be developed, and can rival companies work together to make that process safer without breaking competition laws?

The plaintiffs allege that the four companies crossed an antitrust line by coordinating efforts to slow their AI development. They argue that if competing companies collectively agree to reduce the pace at which their products improve, consumers could receive less value from the AI services they pay for.

The lawsuit does not challenge the companies’ right to slow their own development independently because of safety concerns. Instead, the plaintiffs argue that competing firms should not agree among themselves to restrain development.

The immediate trigger for the case was a statement by Anthropic CEO Dario Amodei on September 12. Amodei called for cooperation among leading AI companies to slow advances in AI capabilities and give safety measures more time to catch up.

The proposal quickly received public support from OpenAI CEO Sam Altman, SpaceXAI CEO Elon Musk and Google DeepMind co-founder and chair Demis Hassabis. The lawsuit points to those responses as evidence of coordination among major AI rivals.

The plaintiffs also allege that discussions about slowing AI development started earlier. Their complaint points to a statement from July signed by senior employees from several leading AI laboratories. That statement acknowledged the intense competitive pressure companies face when considering whether to slow development on their own.

According to the lawsuit, this creates a difficult competition problem. If one company slows its AI development alone while its rivals continue moving ahead, it could lose customers and market share. The plaintiffs argue that an agreement among several competitors removes that competitive pressure.

The companies, however, have been discussing the issue primarily from a AI safety perspective. The argument from industry leaders is that the technology is advancing rapidly and that safety testing, evaluation and safeguards need to keep pace.

Amodei has warned about the possibility of increasingly capable AI systems being used in cyberattacks, biological threats and other harmful activities. He has argued that leading AI developers should have more time to evaluate increasingly powerful models before pushing them further.

The Anthropic chief also acknowledged that cooperation between competing companies could raise antitrust concerns. He suggested that the US government could help facilitate discussions or provide a limited legal framework for certain safety-related cooperation.

Altman has separately supported the idea of a federal framework establishing consistent AI safety requirements. OpenAI has said such a framework could provide greater confidence around safety work, while arguing that companies should not necessarily have to wait for new legislation before working on safety measures.

That tension is now at the centre of the lawsuit. US antitrust law is designed to protect competition and prevent businesses from making agreements that improperly restrict the market. The legal question will include whether safety-related cooperation between competing AI companies can be treated differently from an agreement that limits competition.

The case also raises questions about the future of AI regulation. The technology industry is under pressure to address concerns about powerful AI models while continuing to invest heavily in new systems. Companies face a difficult balance between moving quickly, keeping up with rivals and introducing stronger safety measures.

The lawsuit could therefore become important beyond the four companies named in the case. A court decision could help clarify how US antitrust rules apply when competing AI companies cooperate on safety standards, testing or development limits.

The plaintiffs are seeking to represent a nationwide class of paying subscribers. Their argument is that customers could be affected if competition between major AI platforms is reduced and improvements in services become slower than they otherwise would have been.

The companies have not immediately responded publicly to the lawsuit in detail, according to reports. The case is at an early stage, and the allegations have not been established in court.

The dispute comes at a time when ChatGPT, Claude, Grok and Gemini are competing for users, businesses and developers. Their rivalry has helped drive rapid advances in generative AI, but it has also increased concerns over safety, regulation and the risks of developing increasingly capable systems.

The lawsuit now puts that wider debate before a US court: whether AI companies can cooperate to address genuine safety concerns while still maintaining the competition that drives innovation.

 

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Technology

OpenAI, Anthropic and Google discuss new AI safety

OpenAI, Anthropic and Google DeepMind have been discussing artificial intelligence safety measures for several weeks, bringing three of the world’s biggest AI companies into closer coordination over the risks linked to increasingly powerful AI models.

OpenAI’s global policy chief Chris Lehane confirmed the discussions during a briefing in Washington on September 15. He said the companies were working together on AI safety and did not need a special antitrust waiver to coordinate on safety issues.

The talks come at a time when concerns about frontier AI, the most advanced and capable artificial intelligence systems, are becoming more prominent. The discussions cover ways the industry can work together on safety even as the companies continue to compete aggressively in AI products, models and computing infrastructure.

One proposal under discussion is the creation of an industry standards body that could help establish common approaches to AI safety. Earlier reports said OpenAI, Anthropic and Google had discussed such a body, although there is no indication yet that a final organisation or structure has been agreed.

The idea reflects a growing push for common AI safety standards as companies develop increasingly capable systems. Such standards could potentially cover model testing, risk assessments, independent evaluations and methods for identifying dangerous behaviour before advanced AI systems are widely deployed.

The recent discussions follow a public call from Anthropic CEO Dario Amodei for AI companies to work together and slow the pace of frontier AI development if necessary to address serious risks. OpenAI CEO Sam Altman and Google DeepMind CEO Demis Hassabis have also backed elements of the broader push for greater attention to AI safety.

OpenAI has also indicated support for independent testing of advanced AI models. Lehane said the company supports a provision in the proposed FRONTIER Act that would require leading AI laboratories to allow independent verification organisations to assess whether their models are being developed safely.

The development is notable because OpenAI, Anthropic and Google DeepMind are direct competitors in the global AI race. OpenAI develops ChatGPT and its frontier models, Anthropic develops Claude, while Google DeepMind works on Gemini and other advanced AI systems. Their cooperation on safety therefore represents a different kind of relationship from their commercial competition.

The discussions also highlight a difficult question facing the AI industry: how companies can cooperate on safety without limiting competition or sharing commercially sensitive information. Lehane’s comments that the companies do not require an antitrust waiver suggest OpenAI believes safety-focused cooperation can take place within existing competition rules. Reuters reported that OpenAI, Alphabet and Anthropic had not immediately responded to requests for comment and said it could not independently verify the Bloomberg report on the talks.

AI safety has become a broader issue as companies race to develop systems capable of performing increasingly complex tasks. Researchers and technology leaders have raised concerns about potential misuse, cybersecurity threats, autonomous behaviour and other risks associated with highly capable AI.

The companies are also facing pressure from governments and policymakers. Lehane said OpenAI would support bipartisan US legislation aimed at reducing catastrophic AI risks. The company is seeking greater involvement in discussions over how advanced AI should be tested and governed.

The debate is not limited to the United States. European Commission President Ursula von der Leyen said on September 16 that she would invite major frontier AI companies to discuss ways of addressing AI risks after backing calls for a pause in development.

At the same time, governments and companies remain focused on maintaining rapid AI development. That has created a complicated policy environment, with technology firms seeking clearer safety frameworks while continuing to invest heavily in more powerful AI models.

A common AI safety framework could eventually give developers a shared set of principles for evaluating advanced models. It could also make it easier to compare safety testing across different companies and identify risks before new systems reach millions of users.

Nothing announced so far suggests that OpenAI, Anthropic and Google are forming a single AI company or ending their competition. The cooperation is focused on safety discussions and possible industry standards.

The talks mark another step in the fast-changing AI safety debate. As frontier models become more capable, the companies developing them are increasingly being asked to show not only what their systems can do, but also how those systems are tested, monitored and controlled.

 

Categories
Technology

Claude outputs get invisible AI watermarks

Anthropic is putting an invisible digital fingerprint on content generated by its Claude artificial intelligence models, in a move designed to make AI-created text and files easier to identify. The change, which began with Claude models released on or after August 2, is being rolled out globally as the company responds to new European Union transparency requirements.

The move means Claude-generated writing will contain an imperceptible, machine-readable watermark embedded directly into the text. Unlike a visible label, the marking is designed to remain hidden from users while surviving common actions such as copying, pasting and some light editing. Anthropic says the system is intended to help distinguish AI-generated material from human writing without changing the meaning, quality or readability of the text.

The change could have a significant impact on the way AI-generated content is handled in schools, workplaces, publishing and online platforms. As generative AI becomes part of everyday writing and coding, the question of whether a piece of content was created by a person or an AI system has become increasingly difficult to answer reliably.

Anthropic’s watermarking system is also aimed at tackling the growing problem of so-called AI slop — large amounts of low-quality, automatically generated material flooding websites and social media. Supporters say a reliable way to identify machine-generated content could help platforms, publishers and institutions make better decisions about what they are dealing with.

For students and educators, the technology could become particularly relevant. AI tools such as Claude are increasingly used for assignments, essays and research. An embedded watermark could give schools and universities another way to establish whether AI was involved in producing submitted work, although Anthropic’s system is not being presented as a simple plagiarism detector. The watermark identifies Claude-generated material rather than proving that a person used AI dishonestly.

The system extends beyond ordinary chatbot conversations. Anthropic says the watermarking is applied at the model level, meaning it can follow output generated through Claude’s platform, API, Claude Code and other supported products. It can also apply when Claude models are accessed through cloud platforms including Amazon Web Services, Google Cloud and Microsoft Foundry.

For images and other supported files, Anthropic is taking a different approach. Instead of embedding a watermark directly into the visible content, the company will use digitally signed provenance information based on the C2PA standard. This metadata can provide information about the origin of a file and help establish whether it was generated by an AI system.

The change is closely linked to the European Union’s AI Act. Anthropic has committed to the EU’s Code of Practice on Transparency of AI-Generated Content, which calls for providers to make AI-generated or manipulated content identifiable. The relevant transparency requirements took effect on August 2, 2026, prompting Anthropic to introduce machine-readable marking for new Claude models.

Although the regulation is European, Anthropic is applying the system globally rather than maintaining separate versions of Claude for different markets. This approach avoids having to determine where individual users are located and ensures that the same models carry the same provenance signals across regions.

However, the technology has already triggered debate among Claude users and developers. Some see watermarking as an important step towards AI transparency and accountability, while others worry that it could unfairly label work that has only been lightly assisted or edited by AI. There are also questions over who gets to verify the watermark and how much control Anthropic should have over determining the origin of digital content.

Anthropic has said it is working on tools that will allow users and third parties to detect the markings, with more technical details expected. The company also acknowledges that no provenance system is perfect. Metadata can be stripped from files, while extensive rewriting, translation or mixing AI-generated text with human writing may make detection more difficult.

Older Claude models are being given a transition period. Anthropic has indicated that models released before August 2 will be updated over time, with the EU framework allowing additional time for existing systems to comply.

The bigger significance of the move is that AI companies are beginning to shift from simply generating content to also providing a way to establish its provenance. Google DeepMind has already developed watermarking technology for AI-generated content, while other major technology companies have made commitments around AI transparency.

Anthropic’s decision could therefore become part of a wider industry standard, as AI companies and the wider technology industry explore new ways to make machine-generated content more transparent. As AI-generated text, images, code and other media become harder to distinguish from human-created work, invisible watermarks and digital provenance could become an important layer of trust. The challenge will be making those systems reliable enough to be useful without turning every piece of AI-assisted work into a permanent digital label.

Categories
Leaders

Microsoft CEO questions Anthropic rules

Microsoft Chief Executive Officer Satya Nadella has questioned Anthropic’s decision to restrict certain storytelling requests on its AI chatbot Claude, arguing that the company’s approach to creative writing “doesn’t make sense.” His comments have reignited debate over how artificial intelligence companies should balance safety with creativity as generative AI becomes increasingly popular among users.

Speaking during a recent discussion, Nadella referred to Anthropic’s policy that limits Claude from generating stories featuring copyrighted or well-known fictional characters in some situations. The Microsoft chief said such restrictions could unnecessarily limit creativity and reduce the usefulness of AI assistants for everyday users. According to Nadella, storytelling has always involved building upon existing ideas, myths and fictional universes, making broad restrictions difficult to justify.

The remarks come after Anthropic introduced what it calls its “Claude Fable” policy, which places tighter controls on requests involving copyrighted fictional characters and certain creative writing prompts. The company says the policy is intended to reduce legal risks, prevent intellectual property misuse and encourage the creation of original content rather than derivative works.

However, Nadella believes the approach could discourage users from exploring creative ideas with AI. He argued that asking an AI model to write a story involving familiar fictional characters is often harmless and comparable to the way people have long created fan fiction, parody and educational material. Imposing broad limitations, he suggested, risks making AI systems less helpful without significantly improving safety.

The discussion reflects a wider debate taking place across the artificial intelligence industry. As generative AI tools become more capable of producing text, images, music and videos, developers are under growing pressure to prevent copyright infringement while still allowing users to engage in legitimate creative activities. Companies are increasingly required to strike a balance between protecting intellectual property and enabling innovation.

Anthropic has defended its position by saying that the restrictions are designed to promote responsible AI development. The company argues that encouraging users to generate original stories rather than relying heavily on existing fictional characters supports creators and reduces the possibility of copyright disputes. Claude’s safety policies have generally been stricter than those of many competing AI chatbots, reflecting Anthropic’s emphasis on cautious AI deployment.

Nadella’s comments also highlight the different philosophies emerging among leading AI companies. Microsoft, a major investor in OpenAI, has consistently supported the development of AI systems that remain useful across a broad range of personal, educational and professional tasks while incorporating safety measures where necessary. Rather than imposing blanket restrictions, many AI developers prefer context-based safeguards that evaluate how a request is being used before deciding whether to respond.

Industry experts note that the issue extends beyond fan fiction. Teachers often use fictional characters to explain complex concepts, students employ them in creative writing exercises, and developers use familiar examples while testing AI systems. Critics of strict content restrictions argue that blocking such prompts may reduce educational and creative value without effectively addressing copyright concerns.

At the same time, copyright remains one of the biggest unresolved challenges facing the generative AI industry. Publishers, authors, film studios and content creators around the world have raised concerns about AI models trained on copyrighted material and the possibility that AI-generated content could compete with original works. Several technology companies are already facing lawsuits related to copyright and AI-generated outputs, prompting firms to introduce additional safeguards.

The exchange between Nadella and Anthropic comes at a time when competition in the artificial intelligence sector is intensifying. Companies including Microsoft-backed OpenAI, Google, Anthropic, Meta and xAI are rapidly introducing new AI models and features while trying to address growing concerns over copyright, misinformation, privacy and safety. Their differing approaches are increasingly shaping how millions of users interact with AI-powered assistants.

As generative AI continues to evolve, questions surrounding copyright, creativity and responsible AI development are expected to remain at the centre of industry discussions. Nadella’s criticism of Anthropic’s storytelling restrictions has added another dimension to that conversation, highlighting the challenge of protecting intellectual property without limiting the creative potential that has made AI chatbots so widely adopted.

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Technology

Anthropic brings Reflect dashboard for Claude users

Artificial intelligence company Anthropic has introduced Reflect, a new dashboard designed to help users better understand how they interact with its AI assistant, Claude. The feature gives people a clearer picture of their usage patterns, encouraging them to use AI more thoughtfully rather than simply spending more time with it.

Reflect provides users with insights such as how often they chat with Claude, the types of tasks they rely on the AI for and changes in their usage over time. Instead of focusing on screen time alone, the dashboard is intended to help users recognise whether they are using AI productively for learning, work, creativity or problem-solving.

Anthropic says the goal is to promote healthy AI habits by giving users greater transparency over their interactions. As AI tools become an increasingly important part of everyday life, the company believes people should have better visibility into how these technologies fit into their daily routines.

The launch comes at a time when AI companies are introducing new features to improve user experience while addressing concerns about excessive dependence on artificial intelligence. Reflect is designed to encourage self-awareness rather than maximise engagement, making it different from traditional digital platforms that often focus on increasing user activity.

The announcement has also attracted attention after Elon Musk publicly praised Anthropic’s approach to AI development. Musk described the company positively while reports also indicated that SpaceX is expanding its computing partnership with Anthropic to support AI-related workloads. The development highlights growing collaboration between major technology firms as demand for advanced AI computing infrastructure continues to rise.

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Technology

Anthropic brings Claude CoWork to mobile, web

Anthropic has expanded its AI assistant Claude by launching the Claude CoWork feature on both mobile devices and the web, making it easier for users to collaborate with the chatbot across platforms. The company has also extended higher usage limits for paid subscribers until August 5.

Claude CoWork is designed to make interactions with the AI more collaborative. Instead of responding to one-off prompts, the chatbot can help users brainstorm ideas, draft content, analyse documents and manage projects while maintaining the context of ongoing conversations. The feature allows users to switch between mobile and desktop without losing their workflow.

The temporary extension of higher usage limits gives paid users more access to Anthropic’s latest AI models. The company said the move is intended to support growing demand while allowing subscribers to experience its newest capabilities for a longer period.

The update comes as competition in the generative AI market intensifies, with companies racing to make AI assistants more useful for everyday work. Anthropic is positioning Claude as a digital collaborator that can support professionals, students and businesses across a range of tasks.

By bringing Claude CoWork to mobile and the web, Anthropic aims to offer a more seamless and flexible AI experience, helping users stay productive wherever they are.

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Beyond

US eases access to Anthropic’s Claude Mythos AI

The US government has allowed Anthropic to restore limited access to its powerful Claude Mythos 5 artificial intelligence model, easing restrictions that were imposed earlier this month over national security concerns. Even so, access remains tightly controlled and is available only to a select group of trusted American organisations, not the general public.

The move came after talks between Anthropic and US officials, following a temporary suspension of access for foreign nationals and a broader pause on rollout. Authorities had worried that such an advanced AI system could be misused for cyberattacks or accessed by hostile foreign actors if it was released without strong safeguards.

Under the revised arrangement, more than 100 approved organisations, including cybersecurity firms, critical infrastructure operators and selected Fortune 500 companies, will be able to use Mythos 5. Many of these groups are already part of Anthropic’s Project Glasswing, an initiative that uses advanced AI to find and fix software weaknesses before attackers can exploit them.

Anthropic said the model has shown strong results in spotting complex software flaws and improving cyber defences. The company believes that giving trusted security experts access to the technology can help strengthen digital safety while lowering the risk of misuse. It also said it will continue working closely with US authorities before expanding access further.

The controlled rollout comes as governments around the world step up scrutiny of powerful AI systems. The Trump administration has introduced new rules requiring frontier AI developers to coordinate with federal authorities before releasing highly capable models. Similar restrictions have also affected other leading AI companies building next-generation systems.

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Corporate

Anthropic claims Alibaba targeted Claude in AI data raid

Artificial intelligence company Anthropic has accused Chinese tech giant Alibaba of using thousands of fake accounts to copy the capabilities of its AI chatbot, Claude.

The company claims nearly 25,000 fraudulent accounts generated around 28.8 million interactions with Claude between April and June in an alleged attempt to train Alibaba’s Qwen AI models without permission.

Anthropic described it as the largest known AI “distillation” campaign and has urged US lawmakers to introduce stronger safeguards against unauthorised AI model extraction. Alibaba has not responded publicly to the allegations. The dispute highlights growing competition in the global AI industry.

 

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Corporate

US restricts access to Anthropic’s advanced AI models

The US government has ordered AI company Anthropic to restrict access to some of its most advanced artificial intelligence models for foreign nationals, citing national security and export control concerns.

The move affects Anthropic’s newly launched Claude Fable 5 and Mythos models, which are among the company’s most powerful AI systems. Under the directive, access to the models has been suspended or limited for users outside the United States while the company works to comply with the new requirements.

US officials reportedly believe that highly capable AI systems could have strategic and security implications if they are widely available without restrictions. The measures are part of a broader effort by Washington to regulate advanced technologies that could potentially be used for military, intelligence or cyber-related purposes.

Anthropic confirmed that access to the affected models had been restricted following government instructions. The company said it is working closely with authorities to ensure compliance while assessing the impact on customers and developers who rely on its AI tools.

The decision has triggered debate within the technology industry. Critics argue that limiting access based on nationality could slow global research collaboration and create barriers for legitimate users. Supporters, however, say advanced AI technologies require stronger safeguards as their capabilities continue to grow.

The issue gained further attention after Anthropic published details about the security testing and safety evaluations conducted on its latest models. The company said the assessments were intended to identify risks and ensure the systems could be deployed responsibly.

Industry experts view the development as a sign that governments are taking a more active role in regulating cutting-edge AI technologies. The restrictions could also influence how other AI companies develop and distribute advanced models in the future.

The move comes amid increasing global competition in artificial intelligence, with governments seeking to balance innovation with security concerns. Analysts say the decision could set an important precedent for future controls on powerful AI systems.

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1 Minute-Read

TCS partners Anthropic to scale enterprise AI adoption

Tata Consultancy Services (TCS) has partnered with artificial intelligence firm Anthropic to accelerate enterprise AI adoption and strengthen its workforce capabilities.

Under the collaboration, TCS will provide access to Anthropic’s Claude AI platform to 50,000 employees across functions such as engineering, finance, legal, marketing and sales. The companies will also jointly develop AI-powered solutions for industries including banking, healthcare, telecommunications and public services.

TCS said the partnership combines its industry expertise with Anthropic’s advanced AI technology to help clients improve productivity and drive digital transformation. The move reflects growing demand for enterprise AI solutions globally.