I don't think so. I could easily see a company deciding to host and run these models for their own development. If you have a dev team of about 10 people, a one time $50k investment in an LLM server has to be pretty tempting. Unlimited tokens, decent performance, upgrade options, and potential product integrations.
For companies wanting LLMs in their products in general, I have to think going the local llm route is even more tempting. Somewhat dumb models are more than good enough for a lot of the things people are integrating LLMs into their products.
Surely for most the desire is just an LLM provider that doesnt store or sell their queries (including by national actors). As long as that is allowed to happen surely its the answer for the vast majority.