I don't care about privacy and I didn't have much problems with reliability of AI companies. Spending ridiculous amount of money on hardware that's going to be obsolete in a few years and won't be utilized at 100% during that time is not something that many people would do, IMO. Privacy is good when it's given for free.

I would rather spend money on some pseudo-local inference (when cloud company manages everything for me and I just can specify some open source model and pay for GPU usage).