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It’s not entirely clear far part of a model would be copyrightable in the first place - it’s the result of a mechanical process, where the inputs are someone else’s copyrighted works, after all, while copyright requires some form of creative input.
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No need to deploy it publicly. It's 7B, it'll run on a 3090.
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You talked about commercially deploying it. Of course nobody cares what you are doing on your own hardware for fun.
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Usually the way the licenses are interpreted, if I run it myself and use it to generate $X million in revenue in my own business, I'm subject to the license. In this case, the license seems to cover any commercial usage at all, which would certainly include self-hosting for internal business purposes.

Why even bother demanding such terms? Release the weights or don't release the weights, but this is silly. No one is going to pay them to run or host a 7B static image model.

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Why not? If it's cheap enough, and presuming I had any reason to use an image model, I'd consider paying for it on OpenRouter over hosting it myself.
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