For those curious about the standards for fair sue in US copyright law, and how they have been considered in previous caess, here's one legal overview:
https://ogc.harvard.edu/pages/copyright-and-fair-use
This AI re-mixing stuff is so new, I think few legal observers would say they could definitely predict what the courts will do with it. Nobody really knew how the Google Books case, for instance, was going to go until it went.