As a result of the negative publicity, most people know OpenAI as the company that steals things from other people. Most of them will never hear that this one time, OpenAI didn't actually do the thing they were accused of doing.
That's the problem with having a repeat liar as a CEO: you lose any credibility for those rare instances when you're actually telling the truth.
That is already the perception of AI in general, especially evident if you reflect back on the Github Copilot launch.
People move on as the usefulness of the next shiny thing fills the void of time.
An ad-blocking generation of people who pirated music and movies with the zeal of a god-given right now complaining about AI taking peoples work. Ok.
If GPTxyz is convenient and makes their life easier, they will use it.