The primary constraint isn’t likely what’s possible to do, but that the kernel and weights are too variable right now and the patterns too poorly established to bake into hardware accelerators yet. Margin pressure is also not there yet.
I suspect as the marginal utility of the frontier improvement settles into diminishing returns (I suspect we are there already tbh) baking hardware models with ROM, working set, and kernel cores collocated will be the frontier space as the goal will become reducing capital spend to utility levels rather than research levels.
Once someone has a model that is sufficient for almost any practical use, making marginal inference cost effectively zero will be the competition frontier. I do shed a tear for all those lonely data centers as compute densities will almost certainly make most of them a terrible investment.
But such is the cycle