The other article pitched it as an "AI Companion". I can see the market already; virtual girlfriends or virtual friends for the homebound. People will buy a "Companion subscription" that will allow them to talk their friend all day. It will be very successful. I feel bad for any human moderators that will have to wade through these conversations.
But why can’t this exist on a smartphone? A huge existing install base and, in an iPhone at least, compute capability that will surely far exceed anything that OpenAI can produce.