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Their defense seems to be that AI requires crime to exist, so they should be allowed to do crime. This is not a defense permitted in any body of law. They're going to need to work on that.
AI training on copyrighted materials for scientific reasons is borderline legal. Scientific progress is generally considered a decent reason to skirt around copyright issues. AI can exist in a legal sense (assuming nobody torrents content, thereby spreading the content rather than just pirating it). The problem with AI industry is that they took the scientific exception intended for the betterment of mankind and then…