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Doesn't sound too bad actually. Most games are 60GB+ nowadays (sure, we're talking triple A slop, but still), and with the recent AI craze, having 10GB vram is not uncommon, and will become the norm as time goes on. So I think it's a pretty future-proof solution.

Just to be clear, is this thing is a full-on neural network AI chat bot, or is it something else entirely?

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It's a Natural Language Processor; it's not generative AI. All the content has been written by humans. The NPL is used just to interpret the user intent and load any relevant response.