Going from 5.5 Instant (which was noticeably bad) to 5.6 Luna is a big jump as well. OpenAI is probably the most prominent among the general public - an advantage in some respects but they're giving away a lot of free inference and thus have to use a pretty small model to do it.
I really don't see how they're going to be google here. The free tier is dominated by verticle integration and the platform that people use. Long term I imagine google wins the bottom of the market and I'd be suprised if they lost.