Amazon Caught Destroying Rare Books to Train AI

More alarming was the upshot of that lawsuit: a judge ruled that because Anthropic was turning the physical texts into digital ones and destroying the original copies, it was “transformative” and therefore didn’t violate copyright law.

So by that token if someone digitizes a physical medium and makes it available to the public copyright is no longer valid. Otherwise, having it ingested by an AI has no purpose it it’s not meant to be referenced in response to requests by the end user.