I know the founder through a lot of light discussion. If lots of for-profit alternatives become serious competition, he'd rather move on to something else than take on VC money. His POV is that he already has more money than he ever wanted. All he wants now is to do fun research.
Midjourney is not actually an AI imagery company. It's a research lab that happened to do AI images first.
The founder is a hardware guy who made enough money to retire young off of the sale of his company, Leap Motion. But, he decided what he really wanted to do was cool research with cool people. So, he started Midjourney. The goal for the AI image generator was to be cool research, pay for itself, and grow the lab. It ended up making far more money than ever expected.
I was a Discord mod for Midjourney when it was still in private beta. I got to participate in some of the discussions of "WTH are we doing and how should we do it?" DavidH is very much a smart hippie idealist. He isn't really motivated by even more money beyond how it enables more fun research. MJ actively refused investment. And, actively refused partnerships that would make them money but wouldn't help build the community or the lab.
So, put together: I can totally see how this looks weird from the outside. But, having spent a few years peeking inside, I'm only surprised it took so long for them to branch out like this.
Not on the VC path. Not even on the max-profit path. Just on the "Have fun doing cool research" path.
I was a mod on MJ for its first few years and got to know MJ's founder through discussions there. He already had "enough" money for himself from his prior sale of Leap Motion to do whatever he wanted. And, he decided what he wanted was to do cool research with fun people. So, he started MJ. Now he has far more money than before and what he wants to do with it is to have more fun doing more cool research.
I talked more about it here: https://news.ycombinator.com/item?id=48588293