As someone who's worked at several NVIDIA competitors, including Groq, I can guarantee you that, based on my knowledge, of existing products, they would be able to make much more money should they have lower memory footprint models. Given the amount of VC capital deployed for this (on the order of 100s of millions), I don't believe this is a reasonable take.

Sure, NVIDIA et al may not want that (although, again I don't see why... they too can't produce chips fast enough so being able to provide models for customers now ought to be good), but there's so much money out there that does...