> Until the competition outcompetes you with their new model and you have to train a new superior one, because you have no moat. Which happens what, around every month or two?

Eventually one of you runs out of money, but your customers keep getting better models until then; and if the loser in this race releases the weights on a suitable gratis license then your businesses can both lose.

But that still leaves your customers with access to a model that's much cheaper to run than it was to create.