According to a recent tweet shared by AI enthusiast Nick St. Pierre, the alleged theft occurred last Saturday. It is claimed that employees from Stability AI infiltrated Midjourney’s database and stole all prompt and image pairs, an action that also caused a 24-hour outage. In response, MJ reportedly banned all Stable Diffusion developers from its services, a move supposedly disclosed internally within the company on Wednesday.
Iirc the only precedent we have is that the AI algorithm itself cannot hold the copyright to what it creates, as one artist wanted it to be. Basically the same thing as the famous monkey selfie.
If the copyright of a generated image can be claimed by the creator of the algorithm, or the user who wrote the prompt, and how much human effort is required for it is still unknown.