The problem is, people see "they're not profitable once you account for training" and equate that to "AI will go away soon"
But if all the AI companies stopped training new models, they would all instantly become profitable (and stick around)
The thing that makes them unprofitable, is having to compete (which means training models). If / when enough companies exit the market, the cost to compete goes down and you end up in an equilibrium
That's all true, but that ends badly for us either way. If there's competition, training must continue, which must eventually be reflected in pricing.
But if there's no more competition, there's no more incentive to keep prices low, which will also be reflected in pricing.
Sure, but if companies don't exit the market and FOSS alternatives don't end up being unable to get near them in quality, they have to keep spending on training. And conversely, if the market becomes uncompetitive and FOSS sucks, the winners of the AI arms race are very strongly incentivised to stick their prices up anyway...