I'm a Codeberg user (not a member) and I find the situation rather difficult.
Spoiler alert: It's my fault that I have migrated my stuff from GitHub to Codeberg. I should have read the old pre-AI TOS more thoroughly, because the wording in this makes it perfectly clear that this is a place for "curated", collaborative open source projects only. They don't even allow private repos apart from very narrow use cases and this fact alone should have been a warning sign for me. It's effectively a gated community and the existence of your project depends entirely on the members. I usually keep a project private until it has reached a certain level of maturity, and for some projects that means "never". This isn't possible with the Codeberg TOS
Now having said that, I'm pretty shocked of how things went down concerning the TOS changes about Crypto and LLM based projects. While I hate Crypto with a passion and while I'm very critical about LLM usage, the way the TOS change was communicated was patronising and extremely off-putting and rude, and those members doubled down with this attitude on matrix and Mastodon. And for me that simply means, if Codeberg wants to decide for me which tools I am allowed to use, then it's not the right platform to host my code.
Another point to add... I wholeheartedly agree with most of what the codeberg blog post says about LLMs. However I need to be able to research them simply to know what I am talking about. For example I'm experimenting with local LLM models to find out if they are feasible for use, and there are countless other areas in Machine Learning which are very much valid software projects that do not fall into the knowledge-stealer/planet burner category outlined in the blog post. Banning "AI" is too broad and too shortsighted, and the new TOS are too draconic and vague at the same time. In effect, it boils down to "You can host your project if we like it", and that is a terrible attitude to begin with.
Again, it was my fault to migrate to Codeberg to begin with because the warning signs were there, but this still leaves a bitter taste. I was also stupid enough to make a donation to Codeberg which I now regret as well. It's not an open place, and the members (while most of them probably have good intentions) are too narrow-minded and too dogmatic to provide a truly open platform.
What's a good alternative to Github btw? I don't intend to go back and I don't want to selfhost.