Which part?
Outputs from models that they trained on stolen ebooks, unpaid reddit data, data scraped from millions of websites without credit, etc. Sort of like stealing a bike and then getting mad that it got stolen again later, because it was clearly rightfully yours.
https://i.pinimg.com/originals/d7/72/22/d77222df469b50e3b4cd...
In a sense, it's almost patent trolling.
>use output from the Services to develop models that compete with OpenAI;
Well, I still can use ChatGPT labeling for many other purposes anyway.
I see competing models as those of LLaMa, Falcon, etc. which would fall into the terms in my interpretation.