> An LLM is a predict the next word algorithm.

This is what's known as a category error; an LLM is a 'model', not an algorithm.

It's not even an accurate claim; LLMs predict the next token, not the next word.

> AI is essentially copy paste with more steps

What about when AI creates a limerick about a kubernetes cluster run by Buddhist Monks? Or any number of other novel creations?

Fortunately the courts recognized the transformative use involved in making a model, which is fair use of copyrighted works, in kadrey v meta platforms.

> The most infurating thing however is how AI companies sidestep the IP rights of authors

transformative use falls under fair use, permission from authors is not needed to use legally acquired copyright works for training. Kadrey v Meta Platforms and Bartz v Anthropic.

> but then claim to own those IP rights when their own generated output leaks.

Corporations gonna do corporate things. Blatant hypocrisy is par for the course. Organize and take them to court.