Earlier quoted context omitted.
The fact that ChatGPT isn’t deemed copyright infringement is absurd. Like you can’t take the entire internet and use it to train your software and claim you’re not violating the copyright of thousands of people
The main counterargument is that you have read 1000s of documents to train your brain which produces unique documents with no credit to the original copyright holders. GenAI is just doing the same thing on a larger scale.
The distinction does matter in copyright too, since a transformative work needs some non-trivial amount of human input.