No, it's not at all. This court case is about:
Plaintiffs Sarah Andersen, Kelly McKernan, and Karla Ortiz (“Plaintiffs”), on behalf of themselves and all others similarly situated, bring this Class Action Complaint (the “Complaint”) against Defendants Stability AI Ltd. and Stability AI, Inc. (collectively “Stability”); Midjourney, Inc. (“Midjourney”); and DeviantArt, Inc. (“DeviantArt”) (all collectively “Defendants”) for:
1.) direct and vicarious copyright infringement under 17 U.S.C. § 501;
2.) violation of the Digital Millennium Copyright Act, 17 U.S.C. §§ 1201–1205 (the “DMCA”);
3.) violation of Plaintiffs’ statutory and common law rights of publicity, Cal. Civ. Code section 3344;
4.) violation of Unfair Competition law, Cal. Bus. & Prof. Code §§ 17200, et seq.;
5.) and declaratory relief.
So for each of those complaints the defense needs to establish that their actions fit a different narrative, one that is legally coherent and against the claims for damages.
So for copyright infringement they are going to go for a fair use defense. I'm sure they won't only reference VCRs and Google Books! I'm certain they won't talk about "aggregators" and "generators" because this is not a Supreme Court opinion. They're going to use the established legal doctrines. I'm sure that their lawyers have plenty of other relevant case law at their disposal.
As for DMCA and rights of publicity, this seems to be what motivated Stability AI to adhere to "takedown requests" as they probably had some lawyer whispering in their ear that they probably don't want to spend the time and money testing this in court if it doesn't really impact the marketability of their tool.
I haven't ready anything about the Unfair Competition law in California.