[Matticus_Rex]

Except there's lots of competition for creating that surplus, including from open source locally-hosted LLMs, and while it's behind the frontier it's not that far behind the frontier.

The dumping -> non-competitive price increases playbook is historically very, very rare, and relies on a monopoly (or in a few cases oligopoly) with large externally-enforced barriers to entry. The oligopoly case is highly unstable and doesn't last, and besides we don't have notable barriers to entry; we have both market competitors and locally-hosted imperfect substitute goods.

There's essentially no reason to believe the dynamic you're predicting could succeed here, because we lack all the conditions that make it more likely to succeed, and it's very rare anyway.