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Caution is well and good, but when I look at top selling computers there's a conspicuous lack of Xerox branding.

There is a phrase called "all publicity is good publicity" in fact. It expresses the very real truth that a media outlet reporting a bad interaction by Google AI would probably make people even more curious to try out the AI. If they get the business model nailed down, they should not be afraid of bad press. (Despite our imagination of the ways Google could profit from LLMs, I don't think Google itself has the business model nailed down.)

Google got a lot of free publicity around LaMDA when they fired Blake Lemoine, but didn’t make any moves to take advantage of it in the AGI space. Now it seems OpenAI is here to take their lunch.

LLM != AGI

And would have such headlines actually affected them, at the end of the day?