Making a better LLM isn't the point of all this, it's taking what they have and building on it until they create a true AGI.
Whoever gets there first, makes basically everything else obsolete in an instant.
In a world where the organisations that are blazing the trail are in private hands, this is very bad news for everyone who isn't in the winning organisation.
That's essentially the arms race: who gets to be king of the world.
The slim chance of it not being monumentally detrimental to humanity is basically tied to us abandoning capitalism wholesale and uniting the world, so I'm not holding my breath.
Edit: few downvotes on this, so check my other replies for clarity, if you still think I'm taking out my arse, comment and set me right. It's Lemmy, the points don't matter, I'd rather have a conversation. Plus read again if you somehow get the impression I'm advocating for any of this