That's not true either. Kodak marketed the first digital cameras and they completely owned the market for over a decade, and they stacked giant piles of money from their patent portfolio for many years after others entered the market.
Kodak would sell you a 1.3 megapixel SLR in 1991! That was a decade before Nikon got their products in order. It is a 100% made-up myth that Kodak did not see the potential of digital. Around 1990 their position in the digital camera market was comparable to the position of Tesla around 2015 in the electric vehicle market: the only company that understood there was demand for a technologically cutting-edge product at a pretty high price.
The reason Kodak went out of business is because they lost a phenomenal amount of money trying to become a pharmaceuticals manufacturer.
Edited to add: This is a really excellent example of the ultimate futility of ChatGPT. All it can be is a novel compression algorithm for folk wisdom, which is often wrong. I asked it why Kodak failed to make digital cameras—a misleading question because Kodak was the only player in the digital camera market prior to 1999. Here is the pack of lies it regurgitates.
"""Kodak was slow to embrace digital technology. While other companies were investing in digital camera research and development, Kodak continued to focus on its film-based products. By the time Kodak entered the digital photography market, it was already facing strong competition from companies that had been established in the digital space for some time."""
This is, again, totally false. The real history is the opposite. Kodak was the established player.