The ideological capture of Google and the gatekeeping around the ring of effective altruism AI power around there probably led to the demoralization of the technologists.

I think it was pretty clear that their AI efforts were in trouble when their AI Image generator would only make an African American George Washington, and that dude in AI research was demanding that the much earlier generation AI was conscious and had should have rights. At least at Grok, Elon said he wanted an AI dedicated to the truth which is an easier target to hit than what the Google gatekeepers probably wanted. The ideological purity of a Google AI must have been a real moving target though, and retraining an AI is not an cheap or fast thing.