It's a fine line that's been drawn, but this ruling says that AI can't own a copyright itself, not that AI output is inherently ineligible for copyright protection or automatically public domain. A human can still own the output from an LLM.
The argument is that converting static text into an LLM is sufficiently transformative to qualify for fair use, while distilling one LLM's output to create another LLM is not. Whether you buy that or not is up to you, but I think that's the fundamental difference.
This is a well known blindspot for LLMs. It's the machine version of showing a human an optical illusion and then judging their intelligence when they fail to perceive the reality of the image (the gray box example at the top of https://en.wikipedia.org/wiki/Optical_illusion is a good example). The failure is a result of their/our fundamental architecture.
I still can't believe the guy went to Indonesia, went into the monkeys' habitat, gained their trust, set up the camera on a tripod in a way the monkeys would have access to it, adjusted the focus/exposure to capture a facial close-up -- basically engineered the entire situation specifically for that outcome, and simply because he didn't physically hit the shutter he lost credit for the photo. Meanwhile I can open my phone's camera, spin around three times, take a photo of whatever the hell happens to be in its viewfinder and somehow that is sufficient human creativity to deserve copyright protection.
To me, this is at the heart of why Trump won this election. I honestly do not believe your grocery bill has tripled. That's 200% inflation, which is an insane number. The statistics we have are that groceries have gone up ~25%. I have such a hard time imagining any combination of products that would add up to 8x the national inflation average of groceries.
But, I also don't think you're lying. I think you honestly believe your grocery bill tripled, and I think a lot of people have a similar internal impression about how bad inflation got. It's not useful for me (or, for politicians) to try and argue it logically. No one can check your receipts from 2019 and 2024 and say, look, things aren't actually that bad. Dems needed to kind of take it at face value and come up with a solution to something that people feel is real, and they just did not do that.
Not sure I've ever seen a company openly take this position. This is a crazy policy.