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Market Design for AI: Beyond the Copyright Binary
Dai, Yan, Farboodi, Maryam, Golrezaei, Negin, Shahshahani, Sepehr
How can we design a market of human-generated content for use in training AI models that both enables technological progress and preserves individual incentives for high-quality content creation? Existing approaches take polar positions: a "free-for-all" model based on fair use and a "strong intellectual property rights" model. We show that both fail: Free-for-all does not compensate creators, and -- by modeling as a static Stackelberg game -- strong intellectual property rights also underpower creative incentives. We find this especially true for more innovative creators, a phenomenon we term the "originality penalty." Extending this insight to a dynamic model, we find another market failure undermining AI model performance, even for an initially good model: Such a model induces greater reliance by humans on AI-assisted creation, resulting in homogenized content feeding back into training, which degrades the model performance -- a "curse of precision." We further propose a market design with a data intermediary internalizing cross-creator externalities and subsidizing innovative contributions, thereby restoring efficiency.
Anthropic investigating claim of unauthorised access to Mythos AI tool
Anthropic is investigating a claim that a small group of people gained access to its Claude Mythos model - the cyber-security tool which the AI firm says is too powerful to release to the public. We're investigating a report claiming unauthorized access to Claude Mythos Preview through one of our third-party vendor environments, the company said in a statement. It was in response to a Bloomberg report that users in a private forum managed to access the model without the normal permissions. There is deep unease about Mythos' capabilities - though the UK's top cyber official has said advanced AI tools could be a net positive if the technology was secured from misuse. There is currently no suggestion that malicious actors have managed to get hold of the model, and Anthropic says it does not have evidence its systems are affected.
AI firm Anthropic seeks weapons expert to stop users from 'misuse'
AI firm Anthropic seeks weapons expert to stop users from'misuse' The US artificial intelligence (AI) firm Anthropic is looking to hire a chemical weapons and high-yield explosives expert to try to prevent catastrophic misuse of its software. In other words, it fears that its AI tools might tell someone how to make chemical or radioactive weapons, and wants an expert to ensure its guardrails are sufficiently robust. In the LinkedIn recruitment post, the firm says applicants should have a minimum of five years experience in chemical weapons and/or explosives defence as well as knowledge of radiological dispersal devices - also known as dirty bombs. The firm told the BBC the role was similar to jobs in other sensitive areas that it has already created. Anthropic is not the only AI firm adopting this strategy.
SpaceX to take over Elon Musk's AI firm
Elon Musk's SpaceX is taking over his artificial intelligence (AI) start-up, as the billionaire continues to unify some of his many business interests. SpaceX confirmed the deal to acquire xAI, a smaller firm known for its Grok chatbot, posting a memo from Musk about the merger on its website. In the note, Musk said the combination would form an innovation engine putting AI, rockets, space-based internet, and media under one roof. Terms of the deal were not disclosed. However, a source familiar said it valued xAI at $125bn (ยฃ91bn) and SpaceX at $1tn, making it the most valuable private company ever.
Scarlett Johansson and Cate Blanchett back campaign accusing AI firms of theft
Johansson was dragged into the AI debate after OpenAI's voice assistant used her vocal likeness, prompting the actor to say she was'angered' by the move. Johansson was dragged into the AI debate after OpenAI's voice assistant used her vocal likeness, prompting the actor to say she was'angered' by the move. Scarlett Johansson, Cate Blanchett, REM and Jodi Picoult are among hundreds of Hollywood stars, musicians and authors backing a new campaign accusing AI companies of "theft" of their work. The "Stealing Isn't Innovation" drive launched on Thursday with the support of approximately 800 creative professionals and bands. It adds: "Artists, writers, and creators of all kinds are banding together with a simple message: Stealing our work is not innovation.
Meta buys Chinese-founded AI start-up Manus
Meta says it is acquiring the Chinese-founded AI firm Manus as it looks to boost the capabilities of its tech. Bloomberg analysts and The Wall Street Journal suggested the purchase could be worth more than $2bn (ยฃ1.48bn). Meta said the deal would help improve its own AI by giving people access to agents - tools which can do complex things with minimal user interaction such as planning trips or making presentations. Manus's exceptional talent will join Meta's team to deliver general-purpose agents across our consumer and business products, including Meta AI, it said in a blog post. Barton Crockett, analyst at Rosenblatt Securities, told Reuters it was a natural fit for Meta, which extended into boss Mark Zuckerberg's vision of personal AI using agents.
Disney and OpenAI have made a surprise deal โ what happens next?
Disney and OpenAI have made a surprise deal - what happens next? Disney's famous Mickey Mouse character will soon be available for use in AI-generated videos The world's best-known AI company and the world's best-known entertainment firm have come to a surprise agreement to allow AI versions of some of the most iconic characters in film, TV and cartoons to be used in generative AI videos and images. Social media is dead - here's what comes next The Walt Disney Company has signed a deal with OpenAI that will allow the AI firm's Sora video generation tool and ChatGPT image creator to use more than 200 of Disney's most iconic characters. Meanwhile, Disney remains in dispute with another AI firm, Midjourney, over alleged infringement of their intellectual property (IP), claiming Midjourney aims to "blatantly incorporate and copy Disney's and Universal's famous characters" into their image generating tool. The characters now deemed fair game for OpenAI users include the likes of Mickey and Minnie Mouse, Simba and Mufasa from and Moana, as well as Marvel and Lucasfilm characters, including some of's most well-known names.
AI firms began to feel the legal wrath of copyright holders in 2025
The three years since the release of ChatGPT, OpenAI's generative AI chatbot, have seen huge changes in every part of our lives. Social media is dead - here's what comes next The most high-profile case was filed by Disney and Universal in June, both of whom alleged in a lawsuit that AI image generator Midjourney had been trained on their intellectual property, allowing users to create images that "blatantly incorporate and copy Disney's and Universal's famous characters". The latest on what's new in science and why it matters each day. In October, the Japanese government formally asked OpenAI, the company behind the Sora 2 AI video generator, to respect the intellectual property rights of its culture, including manga and popular video games such as those published by Nintendo. Sora 2 has faced further controversy due to its ability to create lifelike footage of real people.