Maybe you are misunderstanding my point, I don't think I implied that they would steal your whole buisness, but fundamentally the work you put in. Much like how all open source code ends up in most of the responses when you ask a model to code something for you.
Your work that you put in will get outputted in someone else's responses, or Microsoft's. If I made some kind of feature for a office clone and I used Microsoft services they can outright steal my work and make a clone of the same feature.
They don't have to steal my brand or anything to put me out of buisness. They can just brute force me with money and capture more users just with advertising, they could force some kind of regulation where I can't physically keep up with the legal change. There's so many things they can do, and have historically done when its suited them. Hell if I had employees they could just hire them and steal my work that way, its not above them in any form.
Maybe its hard for me to explain because I lack a good example and this imaginary product is very vague. But they can essentially steal your buisness if they wanted to, and I don't see how anyone can feel confident using their products and not expect their work to become someone else's work at some point.
I think chatgpt gave output on someone's game that they developed, like carbon copy of their code. I don't think its some far fetched scenario.