Sadly, they're just following in the footsteps of every large media/publishing/music conglomerate that already screwed over the vast majority of artists/musicians/writers. For every Taylor Swift striking it rich, there's 999,999 who can't even pay their bills with what their copyright gets them.
It is not just about artists. It is about every kind of intellectual work: scientific research, essay, fiction, painting, software, etc - the list goes on..
Indeed. If I take somebody's work, transform it somewhat and sell it, I should pay royalties (unless the author explicitly allowed me to do so). That is exactly the case.
I wonder what a token cost would be if AI companies were to pay royalties to every author who made their business even possible.