That’s not quite the thing. They know that people in various societies in the course of history could create artifacts getting much less in return than they’d get today in a market without LLMs. They just want those people to become crops in their fields, so to say. To reap and not sow.
There’s the obvious problem with this, that there still are alternative business models of closed circles and ordering artifacts, not accepting offers to buy them. And, of course, that either it’s IP violation of ultimate proportions, or if it’s not, then they are going to have too much competition to get anything out of it anyway.
So it’s either oligopoly with regulatory capture, or too much competition to make this profitable.
They apparently want to make some theft legal and some not, a bit like copyright protection entities in ex-Soviet states, which are usually controlled by former pirates legalized (with ex-pirate electronic libraries which are now legitimate stores, except I’m confident they didn’t get consent of most authors whose books are being sold, similarly with movies and such), hunting their “honest pirate” competition.
So - no, at the point this is mainstream, the only regulation of this should be aimed at enforcing existing laws against them. Then one can think of some, but before existing laws are being firmly enforced - no.
Except enforcing existing laws can mean fines bigger than their capitalization and some life sentences for all chief people involved, and these are all “too big to fail” companies, so I don’t even know.
If these companies are, figuratively, sentenced to death for doing this, then it’ll be a process of the century. It’ll define future. A bit like with Standard Oil and United Fruit Company. Or so I think.
Except it might go differently, in their favor, then it won’t be a very nice future.
“All by itself” usually doesn’t happen, “it” just stops looking like a problem for those not destroyed by “it”, and those destroyed by “it” stop existing.