This interpretation makes sense. I think even the 'fair use' clause in the US doesn't protect LLMs. One argument I've heard often is that LLMs synthesize their training set to produce novel output in the same way as a human would... That may be the case, but legally an LLM isn't a human. You can't look at the output of an LLM and say that it's 'fair use' with respect to its training set; it hasn't been established that AI has the same 'fair use' right as a human does; it's already pushing it that companies have this right (let alone an AI agent); anyway, that's just one problem... Also, this is ignoring the fact that the researchers who compiled the training set COPIED the original copyrighted data in order to produce that training set. They either copied the entire work into the training set or they fed the entire work directly into the LLM; in either case; at some point, the entire work was copied verbatim into the LLM's input layer before it was ingested by the AI. The researchers copied the copyrighted content without permission.

Also, when it comes to code, the case is even more damning because the vast majority of the code which LLMs are trained on was not only copyright but subject to an MIT license (at best) and even the MIT license, which is the most permissive license in existence, still says clearly:

"Permission is hereby granted, free of charge, to any person obtaining a copy of this software"

The word 'person' is used very intentionally here.

I think there should be several kinds of AI taxes which should be distributed to all copyright holders. There should be a tax to go to writers (and book authors), a tax to go to open source developers and a tax for the general population to distribute as UBI to account for small-form content like comments and photography...

People invested a lot of time building their entire careers around the assumption of copyright protection; so for it to be violated on such a scale would be a massive betrayal.