I feel like everyone is missing this from the announcement. They explicitly are releasing this to help generate synthetic training data. Most big models and APIs have clauses that ban its use to improve other models. Sure it maybe can compete with other big commercial models at normal tasks, but this would be a huge opportunity for ML labs and startups to expand training data of smaller models.
Nvidia must see a limit to the growth of new models (and new demand for training with their GPUs) based on the availability of training data, so they're seeking to provide a tool to bypass those restrictions.
All for the low price of 2x A100s...