I think they're in a win-win situation. Big AI companies would love to see local computing die in favour of the cloud because they are well aware the moment an open model that can run on non ludicrous consumer hardware appears, they're screwed. In this situation Nvidia, AMD and the like would be the only ones profiting from it - even though I'm not convinced they'd prefer going back to fighting for B2C while B2B Is so much simpler for them

Definitely. Many big hardware firms are directly supporting HuggingFace for this very reason.

True, chip companies have the opposite mindset, Nvidia is making their own open weights I believe