If any AI's will be sued into oblivion from Copyright holders until the bubble collapses into itself due to LLM rot over time due to the lack of curated human input.

This is quite frankly not a serious scenario. Once the label "national security" gets affixed to anything, you'd better be sure it's not going away.

Also, half of all AI development is in China. Why would China care about Western copyright holders, or rather, why would they start caring?