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I don’t get the logic. Not criticizing you, because it’s one good explanation. Who generates the wealth for the billionaire class? Who receives the wealth? You’d want highly educated people and not peasants. Wouldn’t you rather grift in Taiwan than North Korea?
Corporations spent hundreds of billions on LLMs to crator the value of skilled labor, justify mass layoffs, and launder stolen content, all to cut cost. Whether it's legal regulations or basic human rights, in the eyes of sycophants, any perceived risk to their profit margin is deemed unacceptable including their own employees.
Smaller companies are themselves not meant to survive and intended to diversify legal risks and consequences (e.g. Alphabet and Meta split from Google and Facebook). This way they can be dismantled and sold once the legal baggage becomes unprofitable without risking the wealth that has long since been funnelled to its 'legally distinct' owners. The collateral damage to the now unemployed is simply one less thing off their balance sheet and is much easier to do when you have home turf legal ~~corruption~~ advantages.
So no, it's not about generating stable wealth long term as it is about capturing any source of capital by any means necessary, legality and morals be damned.
In my mind, it doesn't really matter who generates the wealth. They already have it. They're just picking up the rest of the floor. And technically, I said, most of us. They want a small serving class. They will always need it. They take the path of least the resistance first. Take out all the lower hanging fruit.
Except that highly educated people are going to eventually fight back or flee grift and fascism. Only the dull , unskilled and propagandized will stick around until the leopards eat their faces.