I see they’re following the Tumblr model:
- Get bought at overinflated values.
- Ban all NSFW content.
- Users leave and seek NSFW content elsewhere.
- Valuation plummets.
- “Actually, moderating NSFW is really hard you guys. We’re just going to try best efforts moderation only.”
- Sell at near total loss.
- There is still NSFW content on the platform, and the policy is used as a cudgel against LGBTQ accounts.

There was a case in Canada where the judge ruled in favour of the plaintiff, where a chatbot had offered information that differed from Air Canada’s written policy. The judge made them honor the guidance generated by the chatbot:
https://www.cbc.ca/news/canada/british-columbia/air-canada-chatbot-lawsuit-1.7116416