For that to work it requires a free market, llms in their current format are a neccesarily closed market. It's like mobile phones. You'll get a sleek somewhat passable product increasingly dated and dysfunctional which every year serves you less and someone else more. Given I can't decide smart phones in their current form are shit, i'll make something better (without enromous capital) meams we're failing open market conditions. Do you see the point i am trying to make?
Tell my economics textbook not me. Free markets are defined, in part, by the absence of coercive impediments to economic activity, which explicitley includes restrictions on entry.