There's a lot of ignorance in yours as well, because the actual point of cloud isn't to be cheaper (and it's not), it's to be standardized in terms of workflows. AWS or Azure or whoever will cost more in the long run, their entire business model is built on top of making it impossible to migrate and then jacking up prices. Of course OAI and Anthropic will become more expensive once enough people get locked into their API, it's how it works.

The more practical day to day reason for the top management to do it is that they manage to remove a significant amount of the specific knowhow their team has and replaces it with a more general skillset which they can hire from at any point and fire any of their team without a second thought if they idk, dare to ask for a raise or something.

It's about fucking over the workers and having all the power, as always. The cost doesn't even matter.

It makes workers easier to replace, but it also makes switching between companies easier.