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The vast trove of copyright work has to refer to training. ChatGPT is likely on the order of 5-10TB in size. (Yes, Terabyte).

There are college kids with bigger "copyright collections" than that...

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No. The paragraph as a whole refers to the "outputs" of vast troves of copyrighted work.

Disk size is irrelevant. If you lossy-compress a copyrighted bitmap image to small JPEG image and then sell the JPEG image, it's still copyright infringement.

I won't say it's irrelevant. How much you use is part of fair use considerations. Their huge collections of copyrighted works make them look worse in legal analyses.

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