that latter will be the case rather sooner than later I’m afraid. It’s just a matter of time with Google.
If that will actually be the case and passes legal challenges, basically all copyright can be abolished which would definitively have some upsides but also downsides. All those video game ROM decompilation projects would be suddenly in the clear, as those are new source code computer-generated from copyrighted binary code, so not really different from a AI generated image based on a copyrighted image used as training data. We could also ask Gemini write a full-length retelling of Harry Potter and just search, replace all trademarked names, and sell that shit. Evil companies could train an AI on GNU/Linux source codes and tell it to write an operating system. Clearly derived work from GPL code but without any copyright to speak of, all that generated code could be legally closed. I don’t like that.