Totally true in the sense that:
1) Copying content you don’t own to ingest into a system to train a model is a clear breach of copyright unless you own it. Can’t see how this would have any fair use defence, especially as it earn our novels and then its owner can sell its novels… Harm.
2) Very likely it’s a breach of platform terms of service.
They’re just waiting to see who has the money to know who to sue…