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I understand Claude being niche (until they started running Superbowl ads?), but why'd it take Google this long to start catching up?

Because Google's AIs are absolutely awful?

they are good enough for 89.56% of ChatGPT users

Really? This just tells me you haven't tried it in a long time. I'd argue it's a much better experience for the average user.

It lies constantly and is only useful for shallow information. At least the non-paying version.

Because they were slow rolling them out, and heavily focused on the profitable corporate customers.