Judge Vince Chhabria pushed back on Meta attorneys arguing that the company's Llama AI models posed no threat to authors in their markets
Even if this were 100% true, it doesn't matter. The DMCA established statutory damages in addition to actual damages for copyright infringement. You don't have to show that you lost money as a result of copyright infringement, only that the infringement occurred. I'm not a fan of this, given how it's been abused, but if the law is going to be enforced against poor people it should be enforced against multi-billion-dollar corporations.
The argument that I'd love to see them make is that training a neural network is a form of lossy compression (they can easily find expert witnesses to testify this). If training a neural network is not copyright infringement then a camera recording of a cinema is not and neither is creating an H.264 rip of a DVD. And that's really not a precedent anyone wants to set.