Most modern neural nets, and certainly LLMs, are overparameterized, which means they are completely capable of regurgitating exact training instances. They can and do repeat copyrighted training data verbatim. It's absolutely copyright infringement when that happens.
I anticipate AI researchers will soon come up with a way to ensure that outputs are a sufficient distance from all training inputs -- to essentially "block" direct regurgitation as valid output, with a tunable "max similarity" set to a safe distance. At that point we can start being more confident that our AI output is genuinely transformative and safe from (valid!) lawsuit.
> The bitching from writers and musicians reflects not that they're being ripped off, but that they're being out-produced.
This comes across as quite heartless. It will be interesting to see whether your view on this changes when AI starts making obsolete whatever you have spent your life specializing in.