I agree with you. I think the reason AI hasn't made anything but derivatives is in part because machines are not sentient. 100% of AI is machine learning, there is no heart or conscience.

However art is anything that moves you and the paintings on this website are most definitely moving to me. I find them terrifying and a lot of that has to do with the fact that a machine made them.

There isn't anything really grotesque there. (Grotesque is a blend of horror and empathy. Horror is a scary guy in a mask holding a bloody axe or things jumping out at you. Grotesque is a person maimed.)

This site has, in my opinion, art that is nauseatingly scary. It is scary in part because its soulless and part because it's a mirror of how a machine sees humanity.

Regardless of how it was made, it moved me therefore from my perspective: It is art.