> It’s much more likely, imo, that local AI models will completely destroy the entire business model of inference.

You're massively underestimating how much cheaper it is to serve models in a datacenter than at home.

> By your own definition it is impossible to achieve profitability without an ever increasing amount of money flowing into it.

No, what? No. This is just a total misreading of what I'm saying. It's extremely easy to achieve profitability. It just requires your business to stop chasing more profitability. The problem is just that then the other businesses who are still chasing more profitability will eat its lunch. It's a market shape that easily supports n-1 bankruptcies but never n bankruptcies.