The Supreme Court hasn’t ruled on a software case like this, as far as I know. But given the recent 7-2 decision against Andy Warhol’s estate for his copying of photographs of Prince, this doesn’t seem like a Court that’s ready to say copying terabytes of unlicensed material for a commercial purpose is OK.
I’m going to guess this ends with Congress setting up some kind of clearinghouse for copyrighted training material: You opt in to be included, you get fees from OpenAI when they use what you added. This isn’t unprecedented: Congress set up special rules and processes for things like music recordings repeatedly over the years.
https://scholarship.law.edu/cgi/viewcontent.cgi?referer=&htt...