Sexual and intimate chat with LLMs will be a huge market for whoever corners it. They'd be crazy to leave that money on the table.
If your goal is to make money, sure. If your goal is to make AI safe, not so much.
It's not just chat. Remember image and video generation are on the table. There are already a huge category of adult video 'games' of this nature. I think they use combos of pre-rendered and dynamic content. But really not hard to imagine a near future that interactive and completely personalized AI porn in full 4kHDR or VR is constantly and near-instantly available. I have no idea the broader social implications of all that, but the tech itself feels inevitable and nearly here.
It will be an even bigger market when robotics are sufficiently advanced.
My main concern is when they'll start to allow 18+ deepfakes
That market is for local models right now.
That's why laws against drugs are so terrible, it forces law-abiding businesses to leave money on the table. Repeal the laws and I'm sure there will be tons of startups to profit off of drug addiction.