It's also extremely intertwined with and competes with for-profit companies
Financially it's wholly dependent on Microsoft, one of the biggest for-profit companies in the world
Many of the employees are recruited from for-profit companies (e.g. Google), though certainly many come from academic institutions too.
So the whole thing is very messy, kind of "born in conflict" (similar to Twitter's history -- a history of conflicts between CEOs).
It sounds like this is a continuation of the conflict that led to Anthropic a few years ago.