Important to note this is not a ruling about copyright infringement: Stability has not yet even presented a defense on that subject. Instead they argued that although they are a UK-based company, no people or computers residing in the UK were involved in the development of Stable Diffusion, so a UK court has no jurisdiction on the matter. The judge didn’t find the evidence for this (which includes the CEO saying he asked around and is “confident” it’s true) conclusive enough, so things will move forward. It may turn out to be true later, but Getty will get a chance to present counter-evidence, and so on.