Proprietary local models won't work. Each time the US companies have started parceling the space, an open Chinese model sweeps along and upends everything, with open source hobbyists close behind.
That and companies are desperate for proprietary data. They all want to be the model that everyone uses because it has the edge, which it maintains from the data of everyone using it. That means getting it off your computer and onto their server. They're getting it by using AI for everything right now because it costs them pennies on the dollar. When the AI bubble pops that'll change, companies are going to have to charge what it actually costs which will limit the commercial space to a significant extent, but data centers will still be the dominant lifeform.