Of course it’s not clear-cut, it’s the law. Laws are notoriously squirrelly once you get into court. However, if you’re going to make predictions one way or the other you have to work with what you know.

I know how these generative AIs work. They are not “compressing data.” Your analogy to making a video recording is not applicable. I’ve discussed in other comments in this thread how ludicrously compressed data would have to be if that was the case, it’s physically impossible.

These AIs learn patterns from the training data. Themes, styles, vocabulary, and so forth. That stuff is not copyrightable.