ChatGPT is full of sensitive private information and spits out verbatim text from CNN, Goodreads, WordPress blogs, fandom wikis, Terms of Service agreements, Stack Overflow source code, Wikipedia pages, news blogs, random internet comments, and much more.
The dataset ChatGPT uses to train on contains data copied unlawfully. They’re not just reading the data at its source, they’re copying the data into a training database without sufficient license.
Whether ChatGPT itself contains all the works is debatable - is it just word relationships when the system can reproduce significant chunks of copyrighted data from those relationships? - but the process of training inherently requires unlicensed copying.
In terms of fair use, they could argue a research exemption, but this isn’t really research, it’s product development. The database isn’t available as part of scientific research, it’s protected as a trade secret. Even if it was considered research, it absolutely is commercial in nature.
In my opinion, there is a stronger argument that OpenAI have broken copyright for commercial gain than that they are legitimately performing fair use copying for the benefit of society.