The discussion on the LWN post gives some insight into why this is probably happening. Most likely due to Rocky/Alma not contributing upstream while benefiting from Red Hat's work.
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I guess "torrenting a Linux distro" will have a completely new meaning 😁
The thing that struck me the hardest was when I found out that this doesn't breach the GPT license.
Basically this only effects downstream distros like Rocky, Fedora is upstream so it will be fine.
At this point I'm more concerned that this sets a very dangerous precedent.
They can't go closed source. They aren't going closed source. It's not allowed under the GPL, so not sure what you mean by this.
It seems like what I've read from GPLv2 and GPLv3 as well as RH's EULAs, contrary to some people here, Red Hat technically didn't violate the GPL, but they are already not following the spirits of GPL and free software/open source (People expect free/open source software as in they can easily find the source publicly accessible in GitHub, GitLab, CodeBerg, or whatever Git, Subversion,... repos of your company or organization). And I think they don't believe in free marketing either, many other companies are aware that people are pirating their softwares, or compiling the software themselves (if it's open source) and give them as if it's from them for free; especially when you're dominating a market segment, it can make people exposed and relying on your softwares, so that anyone will mandate to use your softwares because it's "industry standards".