https://openai.com/policies/terms-of-use/
> What you cannot do. You may not use our Services for any illegal, harmful, or abusive activity. For example, you may not:
> Use Output to develop models that compete with OpenAI.
Training ChatGPT on the entire corpus of human creation is "fair use", but training a model on ChatGPTs output is "illegal, harmful, or abusive activity".
it doesn't say that and terms of service violations aren't illegal per se.
either way, everybody is ignoring these restrictions and OAI is way too afraid to try to enforce it for the reasons you've mentioned
Especially amusing because, although you can argue about whether training a model is an infringment, most of the training data actually have copyrights.
ML models, on the other hand, are not works of authorship and have no copyright protection at all, period. Or at least that's the natural interpretation of copyright law as it's been applied everywhere up to this point. I suspect that the large commercial interests involved will manage to buy either favorable (but bogus) court decisions or favorable (but stupid) legislation.
There is no small nuance to intellectualize about here if 98% of the discussed thing is the contrary of what you claim it is. (Now, one could argue it is 90%, won't help)
... and even if you don't accept the OSD, what these people are distributing isn't source code in any sense at all. Nor do their restrictions usually resemble what the average person would think of as "open".