
Less than a year after generative AI caught fire, the industry is navigating both explosive growth and rising legal peril. In a sign of the times, OpenAI and rival Anthropic are preemptively eyeing their war chests to handle expected copyright lawsuits reuters.com. With authors and media companies suing over AI training data, both startups may tap investor funds to establish a “captive” insurance vehicle or other reserves for potential settlements reuters.com. “The insurance sector broadly lacks ‘enough capacity for providers,’” warned Aon’s cyber risk head Kevin Kalinich, noting traditional insurers can’t fully cover the multibillion-dollar liabilities at stake reuters.com. Indeed, a U.S. judge just approved a $1.5 billion class-action settlement against Anthropic over scraped content reuters.com – underscoring why AI firms are bracing for hefty payouts.