@mirabilos @dalias
Do you know how computers work?
Gosh I hope so, or this computer science degree and following career has been an elaborate fabrication. ;)
I think you might be flipping the logic arrow on this problem. You seem to be implying that it's created by a deterministic algorithm and therefore it can't be transformative. Unfortunately, deterministic algorithms can be applied to vast, vast quantities of copyrightable material. Proven copyrightable material, like this isn't even up for debate. That's the universality of computing.
So clearly, you can't reduce the question to "It's just a deterministic algorithm." That's too broad a constraint.
The questions that the law addresses are the ultimate purpose of the work, whether the changes enacted upon it make it an entirely different kind of thing. And I think the law argues, and I would agree with it, that using the content of the New York Times to train a large language model (along with content from other sources) is self-evidently transformative. I can't pick up a New York Times and shake it and have a novel New York Times shaped article just fall out of it. Clearly, feeding the content through a training algorithm is doing something significant here.
Plus, at the end of the day the purpose of copyright in the United States is the promotion of science and the useful arts. That's the lens through which all of this is viewed. And the courts broadly seem to be coming down on the side of LLM-AI being exactly the kind of science that copyright and patent are intended to promote.