You said "they're losing the race." They might lose, but I don't think we're seeing that yet. They undoubtedly gained a competitor over the weekend, but that didn't change their position as the leading AI company overnight.
Correct me if my understanding is wrong, but if OpenAI's accusation is correct and DS is a derivative work, then isn't it inaccurate to say DS reached ChatGPT performance "at a fraction of the cost"? If true, seems like it's more accurate to say that they were able to copy an expensive model, at low expense.