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IIRC When ChatGPT was first announced I believe the hype was because it was the first real usable interface a layman could interact with using normal language and have an intelligible response from the software. Normally to talk with computers we use their language (programming) but this allowed plain language speakers to interact and get it to do things with simple language in a more pervasive way than something like Siri for instance.
This then got over hyped and over promised to people with dollars in their eyes at the thought of large savings from labor reduction and capabilities far greater than it had. They were sold a product that has no real "product" as it's something most people would prefer to interact with on their own terms when needed, like any tool. That's really hard to sell and make people believe they need it. So they doubled down with the promise it would be so much better down the road. And, having spent an ungodly amount into it already, they have that sunken cost fallacy and keep doubling down.
This is my personal take and understanding of what's happening. Though there's probably more nuances, like staying ahead of the competition that also fell for the same promises.