What more than likely happens instead or also is the survivors get a lot bigger than they are.
No. No, they won't. They're all losing money hand-over-fist. And they're all circularly invested with each other. Microsoft owns OpenAI, and OpenAI uses Microsoft compute which they pay for with ownership. Microsoft valuation is inflated because of OpenAI, and when the bubble bursts, they're going to lose a lot of money.
If you're interested in economics/finance, I suggest reading about the circular cashflows and investment in the AI space.
To make it even worse, they're effectively lying in their accounting, claiming the compute they're giving away as a "marketing expense" instead of operating costs, while booking the value as revenue. The profit : cost ratio is even worse than headline numbers suggest. They are burning through multiples of all of their revenue on operating costs, before they even start to pay for expansion.
In other words, it's fucked.
Sure, AI is here to stay—small to midsize models are already trained and cheap to run. But it's also not going to make significant profit for anyone.