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I think it’s likely that the justice system will deem model training as fair use, provided that the models are not designed to exactly reproduce the training data as output.
I think you hit on an important point though: these models are a giant transfer of wealth from creators to consumers / users. Now anyone can acquire artist-grade art for any purpose, basically for free — that’s a huge boon for the consumer / user.
People all around the world are going to be enriched by these models. Anyone in the world will be able to have access to a tutor in their language who can teach them anything. Again, that is only possible because the models eat ALL the data.
Another important point: original artwork has been made almost completely obsolete by this technology. The deed is done, because even if you push it out 70 years, eventually all of the artwork that these models have been trained on will be public domain. So, 70 years from now (or whatever it is) the cat will be out of the bag AND free of copyright obligations, so 2-3 generations from now it will be impossible to make a living selling artwork. It’s done.
When something becomes obsolete, it’s a dead man walking. It will not survive, even if it may take a while for people to catch up. Like when the vacuum tube computer was invented, that was it for relay computers. Done. And when the transistor was invented, that was it for vacuum tube computers.
It’s just a matter of time before all of today’s data is public domain and the models just do what they do.
…but people still build relay computers for fun:
https://youtu.be/JZyFSrNyhy8?si=8MRNznoNqmAChAqr
So people will still produce artwork.