The main indemnity that providers like GitHub Copilot provide is against being sued by the copyright holders whoes works were "transformed" to make the models. They generally don't offer that for the Chinese models, at least in my region. I can't see any reason other than back-room deals making it so: they're all using stolen works, and all could spit out memorized fragments. But if you're talking specifically about the fitness or otherwise of the actual software these models produce, that is generally handled with the use of sacrificial employees.

Corporate America has been using open source for decades, and it wasn’t anywhere as slow as you portray. This argument simply doesn’t hold water.

Besides, in their present rather dire financial state there isn’t much to sue these companies for anyway cash wise. NYTimes is suing on IP grounds.

Not seeing it either. I do see a torrent of astroturf saying everyone is using self hosted LLMs, but in reality nobody I know is.