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Doesn't the incentive here, lead to privatizing the AI and possibly releasing a different product to the public - or at least with a delay? (not too unlike how the frontier labs work today).
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Yes I would think that would be the endgame goal. But in practice, I’m very skeptical a purely AI-driven executor can stay competitive when the market and government supporting it and surrounding it is driven by humans
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You’re presuming here that CEOs cause companies to make profit instead of serving as a scapegoat for their often unavoidable market dynamics (at best).
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In a 1-person company, who or what generates a profit?
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One person isn't a company. Legally maybe, but there's no point in a company if you can profitably do all the labor yourself.
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At what point does a company become a company if one person doesn’t make a company? What’s the threshold for non-labor where a company becomes a company?
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You're describing the Tendency of the Rate of Profit to Fall[1], which, I'm sorry, is a Marxist idea so it's automatically wrong.

1. https://en.wikipedia.org/wiki/Tendency_of_the_rate_of_profit...

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