Yet, LLMs are trained on data - an information repository. They are capable of accessing and recalling the contents of that information repository, and relaying information from that repository to an end user. It may not be an information repository functionally, but it legally seems to have the capabilities to be classified as one. (I am neither a lawyer nor a programmer, and I am not in the EU.)
The software breaks the law, and the people who built it knew that this was likely the case. It was developed as a research project, which has very different legal requirements from a consumer product. They might not outright ban the software, but they might issue some hefty fines, etc. Banning a product is not the only recourse of the courts.