"Transformative nature" is just one of several factors that go into deciding if something is fair use. Also, fair use is decided case by case in the courts, so one can't say that "training LLMs on copyrighted materials is fair use".
Model vendors know this isn't fair use, given that they're self-censoring the training and/or generation of copyrighted materials by entities big enough to hurt them. As usual, the rest of us have no recourse other than bend over and take it.
Model vendors know this isn't fair use, given that they're self-censoring the training and/or generation of copyrighted materials by entities big enough to hurt them. As usual, the rest of us have no recourse other than bend over and take it.