Also, AI or not is really irrelevant for this case.

They said as much:

Saflor uses AI tools and does not believe that AI itself is the problem. Goldman pointed out that his arguments against Memes Apps would be largely the same even without the AI aspect. But Saflor considers Memes Apps’ platforms to be examples of irresponsible AI products, where the operators problematically advertise that you can “fire your ad agency” and replace all creative work with a meme generator.

Which sounds to me like effectively abolishing the copyright system for anyone who can’t afford paying lawyers to hunt down every little infringement, only leaving it up for wealthy corporations.

And yeah, that would be a really terrible precedent…