Oh lets see.

They were ridiculed for being 'behind on AI'. They haven't spent a dime on investing in AI-related infrastructure and so on...

And yet, they could stand to be the biggest beneficiaries if not the only. Given that they have plenty of resources in reserve and they are buying back stock - enabling insiders to have a greater say on actions in the future.

So tldr they are just standing by until everyone else dies? If this is the theory then they HAVE to be doing some serious AI things internally/R&D/in-secret so they're essentially "ready to go" ?

Of course they are.

I’m not an insider so I wouldn’t know the specifics.

I guess what's the downside though to getting into the game now and gaining users since they have loads of real cash anyways and a crash wouldn't really hurt them?

No downside. In fact, probably even better to wait another year and buy AI assets for nickels on the dollar instead of dimes on the dollar.