OpenAI now tries to hide that ChatGPT was trained on copyrighted books, including J.K. Rowling’s Harry Potter series::A new research paper laid out ways in which AI developers should try and avoid showing LLMs have been trained on copyrighted material.
Transformative works are not a thing.
If you copy the copyrightable elements of another work, you have created a derivative work. That work needs to be transformative in order to be eligible for its own copyright, but being transformative alone is not enough to make it non-infringing.
There are four fair use factors. Transformativeness is only considered by one of them. That is not enough to make a fair use.