The question is whether their current art gives them the edge to build a moat. Specifically, whether in this case the art itself can help create its own next generation so that the castle stays one exponential step out of reach. That seems to be the ballgame. Say what you will, it does seem to be the ultimate form of bootstrapping. Although uncomfortably similar to strapping oneself to a free falling bomb.
The moment they took VC capital was the start of them closing everything and pretending to care about 'AI safety' and using that as an excuse and a scapegoat as you said.
Whenever they release something for free, always assume they have something better but will never open source.