It seems weird to sue an AI company because their tool "can recite [copyrighted]" content verbatim.
If I paid a human to recite the whole front page of the New York Times to me, they could probably do it. There's nothing infringing about that. However, if I videotape them reciting the front page of the New York Times and start selling that video, then I'd be infringing on the copyright.
The guy that I paid to tell me about what NYT was saying didn't do anything wrong. Whether there's any copyright infringement would depend what I did with the output.
If I paid a human to recite the whole front page of the New York Times to me, they could probably do it. There's nothing infringing about that. However, if I videotape them reciting the front page of the New York Times and start selling that video, then I'd be infringing on the copyright.
The guy that I paid to tell me about what NYT was saying didn't do anything wrong. Whether there's any copyright infringement would depend what I did with the output.