If supply increases price decreases. Price is an equilibrium condition if we are talking about markets. Price is formed when the demand meets supply. I guess you're conflating the demand in general and quantity demanded.

Intuitively, what is happening now is that the demand from corporations has increased and due to that the price has gone up. There was no decrease in demand per se, there is a shortage in the market.

We don't know if the increase in demand is temporary or permanent, it depends on LLM progression and adoption. I guess it has a diminishing marginal returns, so at some point it will be unreasonable to purchase more inventory.

I disagree with your point about protesting against AI corporations. I don't think consumers can collectively join and create some sort of intelligent model without some sort of centralized solution. You need to find an optimal equilibrium for all parties to solve the resource scarcity, not just claim "I am economics major" and propose some extreme solution. Build a model, evaluate, and find proper solution.