This is a weird knee-jerk reaction. I feel like this is more a business decision than a security decision.
I feel like with AI, self-hosting software reliably is becoming easier so the incentives to pay for a hosted service of an OSS project are going down.
Yeah, I don't buy it. If they don't want these security reports, ignore them and continue your path. Blaming AI is just an excuse to close source. If you don't want AI to learn from your code, too late. Add genetic algorithms and fuzzing into AI and it can iterate and learn a billion times faster, no need to learn for humans.
AI is certainly getting a lot of milage as an excuse for doing bad things.
Wanna sack a load of staff? - AI
Wanna cut your consumer products division? - AI
Wanna take away the source? - AI
Their product is getting commoditized: https://workspace.google.com/resources/appointment-schedulin...
I think people are finding ways to either enable “pro” features and at least find the right extension points to implement them easily with LLMs. Security is window dressing.