> The argument that training AI on scraped data is "fair use" and the resulting model outputs are "transformative works" has held up in courts.

Nope. Nope. Nope. That has explicitly not been ruled on yet. Transformative means that you don't need a fair use defense. Anthropic has only gotten away with their outputs being called transformative so far because they put a dubiously effective filter in front to block the most egregious infringing outputs. No one has actually challenged this afaik.