I agree with this statement in general, but it “hurts less” to spend money when you are running things yourself. Hard for me to give a specific definition as to why, but it may be more palatable to companies to burn their own cash on their own hardware.

Maybe it is “sunked cost” or maybe it is “I will do it myself dammit”.

Wouldn't it be the other way around? They're all using cloud services already for things that they could run themselves.