Just yesterday, I wrote a first version of a fairly complex method, then pasted it into GPT-4. It explained my code to me clearly, I was able to have a conversation with it about the code, and when I asked it to write a better version, that version ended up having a couple significant logical simplifications. (And a silly defect that I corrected it on.)
The damn thing hallucinates sometimes (especially with more obscure/deep topics) and occasionally makes stupid mistakes, so it keeps you on your toes a bit, but it is nevertheless a very valuable tool.
Generally speaking, if it wasn't cheaper for them to use the cloud, they probably wouldn't. Owning infrastructure comes with costs that amortize better at scale. If infrastructure is not a big cost in serving your customers, then it's probably cheaper to rent.