People are already working on completely copyright safe models and those models can still destroy the entire art market.
Ex: adobe has a gen AI model, trained on content that they own.
What now artists? Can't hide behind fake outrage over infringement for that model. But that model can still end the art industry.
I wonder what the new argument will be then when fully non infringing models destroy the market regardless.
Regardless, I'm not saying it's a perfect idea but it's definitely a start, especially when the current reality is that they're just stealing all the artist's shit and everyone gets $0 instead of $100. As you said, artists are no better off in that universe, but the worst case possible for them is what's happening right this very moment, where they just get fucked over with 0 compensation.
The closest thing you could do is e.g. have a second model that does something novel like create a 3D model from a 2D image and then you try to animate the model and a third model verifies the quality of the output. This then allows you to selectively reinforce the 2D model using information from the 3D model but this isn't simply generating more training data.
I honestly can't follow your argument. Doing something silly doesn't make you the underdog.
Incidentally yes, training AI on AI output will work fine, as long as you have a signal of quality. For example, upvotes in a subreddit would work fine. But that's not crucial to my point, which is that what OP is asking for will accomplish exactly nothing.
OK, say every artist gets $100, one time (exact amount varies but would not be much). Everything's properly licensed according to you and the artists are essentially no better off, and the models are now good enough to create new training data for the future and artists never see any more money.
You've won, I guess?