Nobody got gored. HuggingFace may have the right to make demands; presumably they have already worked that out with OpenAI privately. Not really our business.
Hasn’t the biggest complaint about these (non open weight) models been that the versions open to the public are very careful and will issue denials if the request is even tangentially related to ‘hacking’, or building a bioweapon?
They need to work properly and not do harmful actions. The labs have an obligation to society to not build powerful, dangerous AIs that go rogue.