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It’s definitely cost. There are other ways to make it generate text that is similar to training data without needing it to endlessly repeat words so I doubt OpenAI cares in that aspect.
It doesn’t endlessly repeat, there’s a cap on token generation per request. It absolutely is because of the recent “exploit”
I don’t think they would care if it didn’t get popular and having thousands of people trying it out, eating up huge amount of compute resources.
It’s a known quirk of LLMs.