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Exactly. The cloud is DRM. It’s really the only DRM that works; don’t give the user the code at all.

There’s also the data play of making the user keep data there and pay rent forever to keep it accessible. You can download your videos but you lose edit history etc.

The models they are using are probably already public.

The ml parts can be accessed via API without requiring a full video upload maybe

More likely is that it's easier to monetize. Or both of course

I think hosting the software might also be a way to defuse the software patent minefield - by running the algorithms in a country which doesn't have software patents. This might (arguably) keep the embodiment of the invention in said jurisdiction. Or at least muddy the waters somewhat.