While the startup has won its "fair use" argument, it potentially faces billions of dollars in damages for allegedly pirating over 7 million books to build a digital library.

The ruling isn't a guarantee for how similar cases will proceed, but it lays the foundations for a precedent that would side with tech companies over creatives.

The decision is a major win for AI companies as legal battles play out over the use and application of copyrighted works in LLMs