But if legal system decides the output of LLMs belongs to the entity that trained it, and given that Copilot has the capability to generate any possible code, that means Microsoft, via Copilot, will own copyright to all possible code in the universe, which will naturally allow Microsoft to acquire ReactOS.

Your reasoning makes no sense.

It is the output that could be copyrighted, not potential future output. Otherwise anyone could allready claim copyright on everything.

Obviously, I wasn’t serious :)

That would cause huge big and small tech clashes.