Their first mover advantage is gone, they are unable to innovate on their core product and everything that is said or done is hyped to the extreme.
And now trying to move into adjacent categories where there is no clear problem to be solved and is putting them up against the biggest players in the industry.
Smartphones/PCs/wearables, browsers, social media, & IDEs are absolutely important to any company wanting to sell increasingly more capable models that understand our world better with each passing year (provided the scale hypothesis keeps up): For the control over both the hardware and the OS, and for the amount of data that can be fed back to the training set.
Google (and to varying extents Microsoft & Meta) can leverage their existing products or distribution advantages. Given the how frosty both their Microsoft & Apple partnership now appears, it seems natural that OpenAI are tempted to pursue consumer devices, browsers (Operator is a start), IDEs (cf Windsurf).