Things that can only be used by an exclusive elite don't tend to survive, unless we're talking super-yachts.
AI is only going to work if enough people can actually meaningfully use it.
Therefore, the monetisation model will have to adapt in ways that make it sustainable. OpenAI is experimenting with ads. Other companies will just subsidise the living daylights out of their solutions...and a few people will indeed run this stuff locally.
Look at how slow the adoption of VR has been. And how badly Meta's gamble on the metaverse went. It's still too expensive for most people. Yes, a small elite can afford the necessary equipment, but that's not a petri dish on which one can grow a paradigm-shift.
If only a few thousand people could afford [insert any invention here], that invention wouldn't be common-place nowadays.
Now, the pyramid has sort of been turned on its head, in the sense that things nowadays don't start expensive and then become cheaper, but instead start cheap and then become...something else, be that more expensive or riddled with ads. But there are limits to this.
> People who are cut out to be software developers
You mean the people AI is going to replace? What's the definition of 'cut out to be' here?