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I was about to specify I use Ublock, however I don't get any ads on mobile either. Scrolling down maybe 10 pages worth and not a single ad.

Before Elon, Twitter needed to make money too; it had long distanced itself from its pre-2010ish self in mission and leadership, though that statement suggests at least some independence over the drift of the population during that time.

Don’t the people hosting these instances need to make money as well?

Some of them self-fund, some of them solicit donations, and at least one I know of has a sponsorship.

But they don't generally seek to make a profit, just cover costs.