From what I see, there is now a trend to tap into AWS/GCP to accelerate the journey to LLM and other analytics. Lots of orgs have proprietary data but have no clue how to get it to LLM.
As far as the moat for Google/Msft/Aws, I'd argue the moat now got bigger. There are only few start ups that are really thriving here. Anthropic is one. Perplexity is another. Many fold shop before they get to market. The cost to train these models is north of $1M per run. There are a lot of great ideas but few companies with funding to try them so AWS/GCP/Azure have plenty to pick from and fund if they so desire.