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We Asked A.I. to Create the Joker. It Generated a Copyrighted Image.
(www.nytimes.com)
This is a most excellent place for technology news and articles.
Something transformative from the original works. And arguably not being being distributed. The model producing and distributing derivative works is entirely different though. No one really gives a shit about data being used to train models - there's nothing infringing about that which is exactly why they won their case. The example in the post is an entirely different situation though.