Ownership of the labor replacement mcguffin is hereby transferred from the upstart techno-capitalists to the old industrial-entertainment-finance bourgeoisie that own Hollywood, book publishing, music, etc on the basis of copyright infringement.

New owners: Right so we're going to run AI fairly. Which means paying creators (ourselves obviously) and don't think we'll forget artists either, they'll get literal pennies on their lifetime of work for its use in the ~~labor replacement~~ ahaha I mean cough slop machine since we own their work and machine.

There is no AI going away because of this I think. It's either seized outright by old interests who rob the new with glee or the new interests are forced to give a huge amount, maybe the lion's share even of the money to the old interests. Sure the whole thing could be torpedoed for a bit and government would panic and dump money on the old interests and now owners and gate-keepers of AI to get them to start it up again. Might be too late for NVIDIA's stock price and the stock market overall but I don't think the US is just going to let its AI industry collapse and let China walk away with it. I mean sure they could go with the "China steals everything, they stole our stuff" racism they've been pushing forever but that's only good for propaganda to the rubes, it doesn't stop China from advancing and the Pentagon from shitting its pants.

Quite possible all this does is take down all public-facing models. Both open and free and paid. And what remains are privately contracted models negotiated and used mostly in secret for the US intelligence-military-police state to use all sold by companies with the names of villains or villainous things from fiction run by Thiel and friends which could be seen as acceptable though I think a lot of porkies would be really, really upset at their magic labor replacement machine, their great dream being snatched away from them and wouldn't go so quietly.