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Guaranty (unaudited)

Anthropic, PBC
Notes to Consolidated Financial Statements
(Continued)

In 2026, the Company entered into guaranty and cost reimbursement arrangements with developers to support 
data center capacity development, including procuring long-lead time equipment and materials. The Company 
may be required to make payments to or on behalf of the counterparties if specified trigger events occur. As of 
June 30, 2026, maximum potential payments under these arrangements were up to $0.8 billion, and amounts 
accrued under these arrangements were not material.

Legal Matters

The Company is involved from time to time in claims, proceedings, and litigation, including the following:

In August 2024, various authors filed suit against the Company alleging infringement of copyrighted books in 
the case of Bartz, et al. v. Anthropic in the U.S. District Court for the Northern District of California (“Bartz”). 
The complaint alleged, among other things, copyright infringement related to the use of literary works used in 
the  training  of  the  Company’s  large  language  models.  The  complaint  sought  certification  as  a  class  action, 
unspecified amounts of damages, injunctive relief, attorneys’ fees, costs, and interest. The Company reached a 
settlement  in  the  amount  of $1.5  billion  and  the  interest  earned  thereon,  which  was  approved  by  the  district 
court in July 2026. The Company paid $300 million during the year ended December 31, 2025 and recorded 
liabilities of $750 million in accounts payable, accrued expenses, and other current liabilities and $450 million 
in other noncurrent liabilities on the consolidated balance sheets as of December 31, 2025, and $1.2 billion in 
accounts payable, accrued expenses, and other current liabilities as of June 30, 2026 (unaudited).

In October 2023, Concord Music Group et al. filed a complaint against the Company in the U.S. District Court 
for  the  Middle  District  of  Tennessee  (“Concord  I”).  The  complaint  alleges,  among  other  things,  that  in  the 
process  of  building  and  operating  the  Company  models,  the  Company  unlawfully  copied  and  disseminated 
copyrighted  lyrics  controlled  by  the  publishers.  It  also  asserts  a  claim  for  unlawful  removal  of  copyright 
management  information.  The  complaint  seeks  unspecified  amounts  of  damages,  injunctive  relief,  attorneys’ 
fees, costs, and interest. The case was later transferred to the Northern District of California. Both parties filed 
motions for summary judgment and the court held a hearing on October 21, 2026. The Company disputes the 
allegations of wrongdoing and intends to defend itself vigorously in this matter.

The  Company  is  also  subject  to  four  copyright  actions  in  Canada.  In  May  and  July  2025,  two  putative  class 
actions were filed on behalf of purported classes of Canadian authors - one in British Columbia (“MacKinnon”) 
on behalf of all Canadian authors, and one in Québec (“Grescoe”) on behalf of all Québec authors - each alleging 
violations of Canada’s Copyright Act based on the Company’s copying and use of copyrighted books to train its 
large  language  models.  Grescoe  has  been  stayed  pending  a  final  judgment  in  MacKinnon.  In  July  2026,  La 
Presse Inc., a Québec news publisher, filed a copyright infringement action against the Company in the Québec 
Superior  Court  alleging  that  the  Company  reproduced  its  journalistic  works  in  the  data  used  to  train  the 
Company’s models. In October 2026, a group of Canadian news publishers filed a claim against the Company in 
the  Ontario  Superior  Court  of  Justice.  The  plaintiffs  allege  the  Company  copied  their  content  from  their 
websites to develop its Claude models. They further allege the Company breached the websites’ terms of service 
and circumvented technological protection measures. The Company disputes the allegations of wrongdoing and 
intends to defend itself vigorously in these matters.

In  June  2025,  Reddit,  Inc.  filed  suit  against  the  Company  in  California  state  court  alleging  various  claims, 
including  breach  of  contract  and  trespass  to  chattels,  stemming  from  allegations  about  the  Company’s  use  of 
Reddit  data  in  building  and  operating  its  models.  In  September  2026,  the  state  court  narrowed  the  case  to 
Reddit’s breach of contract, interference with contract, and unfair competition claims. The Company disputes 
the allegations of wrongdoing and intends to defend itself vigorously in this matter.

Between  January  and  October  2026,  several  complaints  were  filed  against  the  Company  in  the  U.S.  District 
Court for the Northern District of California by various music publishers and their affiliated entities, including 
Concord Music Group, Universal Music Publishing Group, ABKCO Music, BMG Rights Management (US) LLC, 
Round Hill Music LP, Sony Music Publishing (US) LLC, Warner Chappell Music, Inc., and others (collectively, 
the  “Music  Publisher  Matters”).  The  complaints  allege,  among  other  things,  that  the  Company  unlawfully 
copied the plaintiffs’ copyrighted song lyrics and musical compositions, and assert claims for direct and indirect 
copyright infringement based on both the acquisition and use of copyrighted materials to train the Company’s 

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