Comment by TimPC

AI companies aren't seriously arguing that copyright shouldn't apply to them because "it's bad for business". The main argument is that they qualify for fair use because their work is transformative which is one of the major criteria for fair use. Fair use is the same doctrine that allows a school to play a movie for educational purposes without acquiring a license for the public performance of that movie. The original works don't have model weights and can't answer questions or interact with a user so the output is substantially different from the input.