Thanks for the links, that’s exactly why I wasn’t sure where things stand currently. While I am familiar with EFF, I wasn’t aware of that article so it was an interesting read.
The one I kind of remembered (even though only partially) was the Reuters article, which contains this quote I was referring to:
The office reiterated Wednesday that copyright protection depends on the amount of human creativity involved, and that the most popular AI systems likely do not create copyrightable work.
It’s obviously a bit more complicated than how I mentioned it initially so I’m glad I could read it again.
The original ban was always meant to be temporary as far as I understand, Valve simply wanted some time to decide rather than make a rash decision (it’s easier to open the floodgates than it is to clean up after the fact). I’m sure things will change in the future as AI tools become more and more common anyway.