[Paul-Craft]

That seems rather debatable. While I don't think the overall use case favors fair use, due to the commercial nature of most of the end products, the fact that such use is clearly transformative is definitely a positive factor on the side of LLM creators:

> A key consideration in later fair use cases is the extent to which the use is transformative. In the 1994 decision Campbell v. Acuff-Rose Music Inc,[13] the U.S. Supreme Court held that when the purpose of the use is transformative, this makes the first factor more likely to favor fair use.[14] Before the Campbell decision, federal Judge Pierre Leval argued that transformativeness is central to the fair use analysis in his 1990 article, Toward a Fair Use Standard.[11] Blanch v. Koons is another example of a fair use case that focused on transformativeness. In 2006, Jeff Koons used a photograph taken by commercial photographer Andrea Blanch in a collage painting.[15] Koons appropriated a central portion of an advertisement she had been commissioned to shoot for a magazine. Koons prevailed in part because his use was found transformative under the first fair use factor.

https://en.wikipedia.org/wiki/Fair_use