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Then we should be able to charge AI (the developers moreso) for the same disgusting crime, and shut AI down.
....no
That'd be like outlawing hammers because someone figured out they make a great murder weapon.
Just because you can use a tool for crime, doesn't mean that tool was designed/intended for crime.
Not exactly. This would be more akin to a company that will 3D printer metal parts and assemble them for you. You use this service and have them create and assemble a gun for you. Then you use that weapon in a violent crime. Should the company have known better that you were having them create an illegal weapon on your behalf?
The person who was charged was using Stable Diffusion to generate the images on their own computer, entirely with their own resources. So it's akin to a company that sells 3D printers selling a printer to someone, who then uses it to build a gun.