The other aspect it's that somebody needs to manage old PC. usually there needs to be a team managing this infra and it creates friction between developers and infra team. so devs run into cloud and try to manage everything on cloud themselves. but at some point arrives consolidation and new team dedicated to managing same infra in aws.
It's cheaper to pay for those cloud resources than hiring 2-3 more people.
If you're an organization that already has a SRE or Infra Eng hired, there's no point supporting a niche setup when every other team is using a prebuilt and troubleshooted environment.
Edit: Can't reply to OP atm, but he makes a good point. For a higher margins and less commodified segment like ML Compute, on-prem computing still makes financial sense.
That said, that's still managed by actual SWEs not a generic Sysadmin, due to intricacies of GPU Architecture and Model Development, and OP is extremely underskilled for this role.
I can't see how it would make sense to deploy in two completely different environments that are not alike at all.
Because you are not saving that much money by having multiple bespoke on-prem environments per team.
Troubleshooting, management, and security headaches grow.
It's just easier to have everyone use a pre-built and troubleshooted environment.