Does it matter?

The set of possible and desirable non-copyrighted text/audio/visual states to render is effectively infinite. Laws don't prevent Scrabble clones; tropes are not protected.

Endless remixes of public domain content are an option as well.

If an iPhone with model weights in chip, a local Mac mini with similar but more powerful model on chip ends up capable of generating endless content copyrights won't provide a moat.