Comment by armchairhacker

You're allowed to draw IP and share your drawings. You're allowed to screenshot and photoshop IP. You're allowed to sell tools that help others draw and photoshop IP*. You're not allowed to sell these drawings and photoshops.

I don't see why an AI can't generate IP, even if the AI is being sold. What's not allowed is selling the generated IP.

Style is even more permissive: you're allowed to sell something in any style. AFAIK the only things that can be restricted are methods to achieve the style (via patents), similar brands in similar service categories (via trademarks), and depictions of objects (via copyrights).

Note that something being "the original" gives it an intrinsic popularity advantage, and someone being "the original creator" gives their new works an intrinsic advantage. I believe in attribution, which means that if someone recreates or closely derives another's art or style, they should point to the original**. With attribution, IP is much less important, because a recreation or spin-off must be significantly better to out-compete the original in popularity, and even then, it's extra success usually spills onto the original, making it more popular than it would be without the recreation or spin-off anyways. Old books, movies, and video games like Harry Potter, Star Wars, and Sonic have many "recreations" which copy all but their IP, and fan recreations which copy even that; yet they're far more popular than all the recreations, and when Warner Bros, Disney, or SEGA release a new installment, the new installment is far more popular too, simply because it's an original.

* IANAL, maybe there are some technicalities, but in practice this is true.

** Or others can do it. As long as it shows up alongside their work, so people don't see the recreation or close derivation without knowing about the original.