It is just Mozilla have a tendency of chasing hype rather than focusing on what they are doing. During early smartphone era they spend most of the resources trying to write an OS with Javascript ( Firefox OS ) that works on a $35 Smartphone.
Now they are doing it again with AI. Although this time around Firefox is in fairly good shape I guess this isn't too bad. But they need to figure out a way to generate revenue rather than relying on Google. And LLM service isn't it.