Midjourney, an AI startup, is in a legal battle with three Hollywood studios over alleged copyright infringement. The studios claim Midjourney’s image-generation models can create images of their copyrighted characters, while Midjourney argues that training its models on these images is fair use. The current dispute is over what information the studios must disclose about their own use of AI, with Midjourney seeking to reveal potential hypocrisy in the studios’ actions. Why it matters: the outcome of this case could have significant implications for the development and use of AI in the entertainment industry, setting a precedent for what constitutes fair use and how AI can be used with copyrighted materials.