Transformative yes, so is ChatGPT. Much more so actually. Non-competitive is debatable. Especially with the instant answers Google has in addition to regular snippets which can also obviate the need to visit a site. I have a hard time seeing ChatGPT as competing with newspapers more than Google Search does.

Nobody is seriously going to ChatGPT and trying to trick it into regurgitating old NYT articles as an alternative to paying for access to NYT's archives. Meanwhile, newspapers went as far as getting the laws changed in several countries because they felt Google was competing with them too much and didn't like the fact that it was legal.