[mindslight]

> [i]ntellectual property and the enforcement thereof is in and of itself a Torment Nexus.

That does not make it clear. Saying that A is an instance of B does not define what B is.

> "AI" exists outside of the various corporations hosting LLMs on The Cloud™

You're speaking obliquely here, so I'm left guessing what you mean. I think you're just referring to how individuals can train/download/modify/run models locally. I don't see how that affects copyright, as it seems to fit in the same exact place as piracy of the source material (unfortunately). Downloading a model that has gotten the attention of corpos for "infringing" will be treated exactly how torrenting original works is now.