"You can't take code produced by our service to make competing services, but we can take code you produced to compete with your service (i.e. software engineering)" is pulling up the ladder IMO. If they can from-scratch train a model without using human-produced code, I think they're within their rights to stop humans from using their model to compete with them. But if they're training on GitHub/Hugging Face/arXiv/Common Crawl/etc, which certainly includes many open-source repos whose licenses they're violating, I don't think they should be legally allowed to prevent people from using their model to produce code that merely competes with them. They themselves have taken other people's code in order to compete with software engineers.

I hope they get nationalized and either the models are open-sourced or the profits are owned by the public.