I've already talked about the indirect damage AI's causing to open source in this thread, but this hyper-stretched definition's probably doing some direct damage as well.

Considering that this "Open Source AI" definition is (almost certainly by design) going to openwash the shit out of blatant large-scale theft, I expect it'll heavily tar the public image of open-source, especially when these "Open Source AIs" start getting sued for copyright infringement.