Mozilla's brand is "pro privacy", it does make sense for them to launch an AI product with that brand position. I doubt it'll be successful because I don't think enough people actually care about privacy, but still.
I feel like it's a common HN sentiment to say "why don't Mozilla just focus on the browser?!"... the answer is because barely anyone is using it and there's very little they can do to move the needle on that. IMO they're an organization looking for a purpose.