There's a lot of capital that stands to gain from banning local AI, but there's also a lot that wins either way, or only wins if local AI sticks around.

Apple is paying for their cloud AI, but they can make customers buy devices for local AI. There's all the PC and Android handset makers (ASUS, HP, countless Chinese brands, etc.) who only really stand to gain from selling hardware to customers. Not to mention that Nvidia/AMD/Intel would all happily take a cut on both halves of the ecosystem.