That was true about the Wolfram Physics Project. But now, the Wolfram Institute will compete for research funding, as he explains in the blog post. In fact, this is the whole point of creating the Institute: WPP couldn't scale up as it was eating too much of his own money, and he believes he needs to scale this up to actually bring the work to fruition.

> So far we’ve basically been incubating the Wolfram Institute within our existing organization, with me effectively footing the bill. But as we launch the full Wolfram Institute we need a larger scale of support, and we’re counting on having a network of people and organizations to provide that.

He is taking resources by not properly attributing work, actually. One of the big criticisms of NKS was the lack of a real bibliography and there was the whole Wolfram v. Cook debacle on top. As I recall, the book still doesn't credit cook for the proof.

Money is not the only resource. Scientist time is another resource, and probably a lot more important when it comes to Physics. Any private venture such as this necessarily (a) takes up scientist time, (b) provides training to scientists that can be applied to other problems later on, (c) as a second order effect, molds the public's perception of science in a certain way.

(a), (b) or (c) could individually be positive or negative to society. And their net could be positive or negative.

I don't know what these values are for Wolfram's work, but we can definitely make this sort of nuanced analysis.

There’s no such thing as a limited supply of scientists, whose precious time is to be carefully allocated. For all I know, Wolfram might be creating new scientists from people who otherwise might not choose to pursue corrupt academia route.

There could be an opportunity costs, researchers working on this could be working on a different problem. Unlikely, but not impossible.

I'm fairly sure Wolfram's researchers are working on it because they are interested, and want to do it.