>If I build a Markov chain based on a statistical analysis of word sequences in Hamlet, and then use it to produce a new sentence that isn't found in the text of that work, I have not created a derivative work of Hamlet under any applicable sense of that term.

If you write "To see or not to see, that is the question" about a person named Eyelet, who is going blind, how can you argue that it is NOT derivative of / borrowed from Hamlet? Yet that sentence is not in the work. Isn't that what LLMs essentially do? Tokenize, then substitute in new values for certain tokens, while retaining the general structure?