PRNG is not intended to use information sent into it in a substantive way (in other words, for PRNG does not matter if what you feed into is is Shakespeare's sonnets or white noise). Sure, if your machine is an electronic analogue of a shredder, then yes, the result is not a derivative work in any sensible meaning. But LLMs are not that kind of a machine.
I agree! But that's exactly my point: 1 type of machine is ok, another isn't, so it is not just a matter of all machines make derivative work. To draw the line more carefully is an open question. I would be surprised if a machine that "uses information sent into it in a substantive way" is a perfect deliminator. OTTOMH musicians might present some compelling objections.
