It's not that simple.
Tabnine is not dead even after two major release of GH copilot.
There is a vscode fork called cursor which plans to support LLM on user hardware.
Jasper and many gen AI text tools are still in business
Pricing : New features will cost at least 20$/month compared to many of those chat with pdf apps which cost way less. You can actually use bing to chat with your pdf for free. Even from API standpoint the new assistants API which provides retrieval functionality is although simpler to implement but still costlier than creating your own vector index.
Privacy : many orgs wont upload their data to openAI, they will rather self host a vector store. There are YC W23 startups working on private GPT for enterprises, even though openAI released their enterprise plan long ago.
UI : there are(where) multiple reddit clients with millions of downloads - all they do is use reddit API to provide better UX.
At the end of day companies & users don't care about how it's implemented under the hood. If it has better UX and integrations with their workflow they will continue using existing solutions, for that reason I believe chatbase founder will still earn millions of $$.
Personally I think this update is big only for casual users and small orgs. For everyone else dedicated tools are better.