The models were built using copyrighted works, so why can't models be built using other models?
They do seem to be paying for it (as per the 1.5Bil lawsuit yesterday and them now purchasing books and licensing from media companies).
Whether we think they're paying enough is another question, but "I'm paying for content so can protect it" doesn't seem inconsistent.
We may decide that giving models away for free means they don't have to license content (judging by HN comments), but currently that doesn't seem to be the case as Meta is facing lawsuits for its open models.
(Obligatory stratechery piece: https://stratechery.com/2026/whos-afraid-of-chinese-models/ )
Because model output is probably far closer to software or a licensed work which possibly has greater protections than it is to copyright. There is far less possibility of fair use, it might be protected by patents, license or reverse engineering laws.
In any case the laws are being written now, but I doubt these will have worse protection than software does, which has far better protections than copyright