Models absorbed the pirated content. Now Meta is distributing those models. Is that considered distribution?
If you trained an LLM repeatedly on nothing but the text of LOTR until it could re-produce the books verbatim and then tried to sell copies of that LLM, then I agree that would be blatent copyright infringement, yes.
https://en.wikipedia.org/wiki/Authors_Guild,_Inc._v._Google,....
I think they have about a coin flip of a chance that it passes muster in the courts.
I listened to other people's music and learned some of their songs before writing my own music, that doesn't mean my songs are distribution of theirs.
I read other people's books and short stores and news articles before writing my own, that doesn't mean my writing is distribution of theirs.