> under current law, there's no blanket exception for "how much" of a copyrighted work is used
Under fair dealing laws, there are. [1] Though, as always, if commercial fan art is legal, then so should something that uses only a couple bytes of information per work, bar overfits.
> But until then, it seems obvious to me that anyone arguing that generative AI based on models built with copyrighted works is completely legal is using motivated reasoning.
It is completely legal in the EU, Japan, South Korea and Singapore. [2]
[1] https://libhelp.ncl.ac.uk/faq/43267
[2] https://www.reedsmith.com/en/perspectives/ai-in-entertainmen...