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Comment on The company behind Stable Diffusion appears to be crumbling into chaosparent

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Can you point to where in the Copyright Law of 1976 (which was the codification of the fair use doctrine) it states that an AI creating new images after being exposed to copyrighted images during training means the new images are "unauthorized derivative works" even if they do not resemble the original copyrighted image?

(Let me remind you that what the act states is that fair use explicitly applies to, but is not limited to: "criticism, news reporting, teaching [emphasis mine], scholarship, or research purposes.")

Or perhaps you can point to settled case law on the subject?

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