They’d have to go all-in on supporting third party OSs like Linux first. Sure, there are projects to bring linux to the M1, but enterprises that buy commercial server hardware will demand 1st party support
Knowing Apple, their version of "cloud" servers would probably be some sort of SDK that lets developers build applications on top of their hardware / software stack, and charge per usage. Kind of like Firebase, but with Apple's stack.
It will be a hard business decision for them, as at this point it's extremely hard to compete with Amazon, Google and Microsoft. Maybe they will buy up some cloud services provider, we'll see.
The major Linux providers already offer 1st party supported Linux on AWS. Both RHEL and Ubuntu instances offer support contracts from their respective companies, as well as Amazon Linux from AWS themselves. It is already here and a big force there. You can provision ElastiCache and RDS Graviton instances too.
Yes but on architectures that are already supported outside of AWS. It's not about running Linux in AWS, it's about running Linux on the chosen chip.