The failure to do any meaningful work related to the most important breakthrough in AI ever is objectively bad.
There might be some argument on other metrics - publications, students trained, lectures, recognition, whatever, that show this institute is lagging. But not being part or llms implies nothing about their success or failure.
Could you name a bigger breakthrough in AI?
Maybe even convolutional neural networks, because they showed that ANNs are viable and are what really got the ball rolling.
[1] K. Fukushima, Neocognitron: A Self-organizing Neural Network Model for a Mechanism of Pattern Recognition Unaffected by Shift in Position.
[2] F. Rosenblatt, The Perceptron: A Probabilistic Model For Information Storage And Organization in the Brain.