> Baby companies do just ban it outright

This might be the key point. There's legal ambiguity surrounding these licenses. Large companies with legal resources can draw their own line in the sand to protect themselves.

But small companies don't have the resources or the bandwidth to address the ambiguity. So a blanket ban (Zero AGPL and GPL for Internal or SAAS, Linux generally gets a pass) is rational.

Likewise, I see small dev shops without the resources to address anti-AI policy ambiguity are going to defer contributions until further notice.