Makes sense to me.

Most of the companies that spend $$$$ with them can't use public registries for production/production-adjacent workloads due to regulations and, secondarily a desire to mitigate supply chain risk.

Artifactory is a drop-in replacement for every kind of repository they'll need to work with, and it has a nice UI. They also support "pass-through" repositories that mirror the public repositories with the customization options these customers like to have. It also has image/artifact scanning, which cybersecurity teams love to use in their remediation reporting.

It's also relatively easy to spin up and scale. I don't work there, but I had to use Artifactory for a demo I built, and getting it up and running took very little time, even without AI assistance.

From my understanding there are a lot of companies that need their own package repositories, for a variety of reasons. I listened to a couple podcasts where Charlie Marsh outlined their plans for pyx, and why they felt their entry into that market would be profitable. My guess is that OpenAI just dangled way more money in their faces than what they were likely to get from pyx.

Having a private package index gives you a central place where all employees can install from, without having to screen what each person is installing. Also, if I remember right, there are some large AI and ML focused packages that benefit from an index that's tuned to your specific hardware and workflows.