There would be no problem if they open-sourced everything including the model weights. That was their original mission which they have abandoned.
As a reminder, the 4 factors of "fair use" in the United States:
1. the purpose and character of the use, including whether such use is of a commercial nature or is for nonprofit educational purposes;
2. the nature of the copyrighted work;
3. the amount and substantiality of the portion used in relation to the copyrighted work as a whole; and
4. the effect of the use upon the potential market for or value of the copyrighted work.
One of them is the purpose or character of the use, including whether the use is of a commercial nature or is for nonprofit educational purposes.
https://www.cnbc.com/2025/10/28/open-ai-for-profit-microsoft...
Non for profit just means there is no dividends to owners but they can very well get huge salaries. So actually non for profit is a very bad name.
Should be called non dividend company.