Apple should setup their own giant cloud of M chips with tons of vram, make Metal as good as possible for AI purposes, then market the cloud as allowing self-hosted models for companies and individuals that care about privacy. They would clean up in all kinds of sectors whose data can't touch the big LLM companies.

That exists but it's only for iUsers running Apple models. https://security.apple.com/blog/private-cloud-compute/

The advantages of having a single big memory per gpu are not as big in a data center where you can just shard things between machines and use the very fast interconnect, saturating the much faster compute cores of a non Apple GPU from Nvidia or AMD