[falcolas]

This isn't really transformation though. It's compositing pixel-accurate bits and pieces of multiple pieces of art to make a new piece (as proven by stock photo watermarks being replicated in some pieces).

That difference is enough to assert that there is a wholly reasonable ethical basis. Especially when they're obviously not just training it on images with relaxed copyrights.

[O__________O]

A collage of prior works is protected as a transformative work, regardless of if you’re able to recognize the seams between the pieces. Even use of trademarks is not protected in works of art if there is no clearly defined trademark violation; for example, putting fries in a box that looks identical to McDonald fries box and offering them for sell would not be legally justifiable by just saying it is art.

Ethically speaking, for the second time, you ignored that within art world, or real world for that matter, making derivative works is completely ethical if done within any related legal constraints; as such, to me, you’re not making a good faith effort, which is actually unethical if intentionally done, so I will not be replying any further.