> (1) They can give away the model but sell an API - but they can’t serve a model as cheap as Goog/Msft/Amzn who have better unit economics on their cloud and better pricing on GPUs (plus custom inference chips).
Which has a simple solution, release the model weights with a license which doesn't let anyone to commercially host them (like AGPL-ish) without your permission. That is what Stability.ai does it.