If you're suggesting they really do have 1000x the costs of companies whose core business is internet, and yet they refuse to contract with those companies to deliver the service (they can still get 990x profit while still leaving 10x for the other company) in a rational market that would be a business-ending level of incompetence.
It's no different than if I'm selling apples for $1000 each. Even if I can find one or two customers willing to pay that, wouldn't I have to be pretty stupid to spend $900 growing each apple incompetently when I could just spend $2 at the grocery store to fulfil those orders?
I’ve done the best I can with limited time and space to explain it here. If you still don’t understand or don’t care to learn how cross-subsidization works and the costs and business model of operating a tier 1 cloud provider and how they differ massively from operating an ISP, I don’t know what to tell you. Getting a job at one of these companies to gain that experience would be eye-opening for you.
It's no different than if I'm selling apples for $1000 each. Even if I can find one or two customers willing to pay that, wouldn't I have to be pretty stupid to spend $900 growing each apple incompetently when I could just spend $2 at the grocery store to fulfil those orders?