Ultimately, the onus at every VC backed local LLM startup is to launch a cloud based offering, because that's the only potential path in sight for venture scale returns.

For now, it seems that direction that lm studio is taking for enterprise market is "local ai deployment support". They recently launched "lm link" which basically uses tailscale to create e2ee connections between computers running lm studio where you are logged in. Granted one can also setup tailscale or their own vpn themselves and use llama-server, but I guess it is simpler to provide it out of the box. In any case I am not sure pivoting from running local models to "cloud offering" (as in providing llm inference at their severs) is a sensible choice granted there is already competition in that space and they have no leverage there. The highest expected path imo would be to be bought by a company that makes (esp open weights) llms and has a similar business plan around enterprise contracts with local deployments.