But that's because the movie is still recognisable. Using an algorithm doesn't automatically remove copyright, but if the algorithm transforms the data to a point where it can't be recognised as the original work, then it isn't breaking copyright.
But the AI as a whole is capable of reproducing the original in a recognizable form, and it does so on demand quite easily, because it was trained on them - how is it different than selling a zip file containing millions of copyrighted works, and also a bunch of new stuff?
so you're saying that the digits of pi is violating copyright then?