In the beginning people did actually find it cool and had fun with the pics and videos being made from it. And found asking it to provide code useful.

Backlash started once corporations started integrating AI into OS and software. People saw that it would be used aggressively to infringe upon peoples privacy and shove ads in their faces, and its getting harder to avoid OS or programs without it because corporations use any excuse to keep pushing it. Its seen as spyware because thats how corporations use it.

And even before corporations went all in on AI, techy people only trusted open sourced AI run on their own systems over trusting delicate information to a third party one connected to the Internet to vacuum up all that data.