It is totally legal to train on this stuff, but illegal to reproduce copyrighted works. Interestingly, Google's business model could have been criticized the same way. They construct a big index of copyrighted works, reproduce them, and monetize it.
With all due respect, Chomsky has no intuition for this kind of technology. Was sad to see him reject the technology, felt oddly like sour grapes when really LLMs have validated his work on universal grammar.
Right now, Altman may be the most relevant for the further development of AI because the way the technology continues to go to market will be largely shaped by the regulatory environments that exist globally, and Sam leading OAI is in by far thr best position to influence guide that policy. And he has been doing a good job with it.
I agree with the article, it really does feel like something special is happening in the city. I work at TWG, a software dev agency in Toronto and we've worked closely with many of these startups and are pretty well connected to the startup culture. Happy to answer any questions you might have about our local scene!