Well theres at least two different buckets of this.

First is the scraping of the open internet.

The second is the paywall bypassing, YouTube audio recording, and pirated content training that the labs have basically admitted to in one form or another.

Content from both gets served back to us, in exchange for watching ads/paying a subscription/paying tokens.

The second is more immediately hypocritical because they are license/copyright/DMCA violations that the little guy could get sued for while the labs get $2T valuations for. The automation of crime at scale, which is a common VC pattern.