Adobe Hit by AI Training Lawsuit, GS Downgrade to Sell with $290 Target
Adobe faces a February 9 lawsuit in California federal court alleging infringement of hundreds of thousands of books used to train its AI models, joining a December suit. Goldman Sachs downgraded the stock to Sell with a $290 target, even as Adobe launched a January 30 AI partnership with Cognizant.
1. Lawsuits Filed Over AI Training Data
On February 9, Adobe was sued in the US District Court for the Northern District of California over allegations that it used pirated books to train its AI models, citing infringement of hundreds of thousands of titles. This follows a similar December lawsuit alleging unauthorized use of copyrighted materials in AI development.
2. Strategic AI Collaboration with Cognizant
On January 30, Adobe announced a collaboration with Cognizant Technology Solutions to deploy AI-driven content supply chains for regulated and high-growth industries facing surging content demand and cost pressures. A company survey found 96% of marketers reported content demand doubling over two years and 71% expect it to quintuple by 2027.
3. Analyst Downgrade by Goldman Sachs
Goldman Sachs downgraded Adobe from Buy to Sell on January 12, assigning a $290 price target. The firm highlighted that Adobe’s forward earnings trade at a 15× multiple, suggesting limited upside compared with peer valuations.