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"Mozilla is closing their fedi instance and diving into AI."
Remember that Mozilla has always been a company which chases "new things". In fact, one of them even blames wasting time on trying to build an OS or whatever for failing to improve their web browser.
Also, going by commentary on it, Mozilla seemed to run their fedi instance really badly, so is one less badly run instance that much of a loss?
That aside though, launching new projects, wasting time on them, only to shutter them later, is something which Mozilla seems to do a lot.