Earlier quoted context omitted.
Seems absurd that somehow the scale being massive makes it better somehow You would think having a massive scale just means it has infringed even more copyrights, and therefore should be in even more hot water
So, the law has this concept of 'de minimus' infringement, where if you take a very small amount - like, way smaller than even a fair use - the courts don't care. If you're taking a handful of word probabilities from every book ever written, then the portion taken from each work is very, very low, so courts aren't likely to care. If you're only training on a handful of works then you're taking more from them, meaning…
The word-probabilities are transformative use, a form of fair use and aren't an issue.
The specific output at each point in time is what would be judged to be fair use or copyright infringing.
I'd argue the user would be responsible for ensuring they're not infringing by using the output in a copyright infringing manner i.e. for profit, as they've fed certain inputs into the model which led to the output. In the same way you can't sue Microsoft for someone typing up copyrighted works into Microsoft Word and then distributing for profit.
De minimus is still helpful here, not all infringments are noteworthy.