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What about fair use? (both in the copying made for training itself and the resulting output from the service)

We are witnessing a monstrous perversion of "fair use" and the greatest theft of intellectual property in human history.

Do you measure IP's value using the amount of work/effort that was put into creating it, or only the end result?

Currently US copyright law only cares about the end result. Effort has no meaning or bearing in any legal analysis of copyright matters.

Copyright infringement trials are tried in the infringer's jurisdiction.