Its even dumber when you consider AI model output was not considered copyrighted or eligible for copyright to begin with, as far as I know. How exactly would this even be "theft"?
I can't imagine Moonshot have found a way to completely bypass the subscription or api billing either. So those model outputs have been paid for! No theft of any kind!
At most they'd be getting more out of distributed use of subsidized plans and API than the ToS would prefer.
It’s theft because a lot of rich people have money on the line.
steal from the rich -> theft
steal from the poor -> capitalism
Plus on top of that it's been ruled that training on copyrighted material is allowed because it's transformative. As a result even if the model output is copyrighted training on it would be as allowed as training on books.