Linux is probably best understood in terms of Clayton Christensen's _The Innovator's Dilemma_.
Remember that Christensen pointed out that some technologies (usually, but not exclusively when they are new and leading edge), are based handled completely within a single company, because to reach the goals (performance, weight, battery life, whatever) every part of the device has to work optimally with every other part.
But other technologies have been around long enough, and have their use cases well enough understood that they can be standardized, which allows for a different set of advantages (eg competition and volume leading to lower, often much lower) prices.
Linux operates as such a standardized commodity IN SPACES THAT MEET THESE CRITERIA. This is primarily data warehouses where the task to be performed in fairly standardized, as is the hardware. As you move further from this, it becomes less and less desirable. In mobile specifically, it requires Google to do the best it can (which is not always that great) to try to get it to fit a constantly changing CPU architecture (big.small, now three tiers), constantly changing GPU use cases, the new appearance of NPUs, and so on.
Even in the server space, certain technologies grow flabby and ever less fit for purpose as time goes on, if there's no strong constituency for putting up with some pain in order to make things better. The current hypervisor+Linux model is hardly a great use of resources, and ever more serious data center work (eg Nitro, or interaction with GPUs and NPUs) is diverging more and more from "standard" Linux. Security is likewise hardly ideal (it may be better than Windows in this space, but it's not like that's a great endorsement).
As far as I can tell all the large datacenter vendors are running something that's diverging more and more from "public" Linux every year. I'm not sure how it ends, but *for now* everyone involved seems to find it a convenient fiction to pretend that they're all running Linux, even as more and more compute moves onto devices that aren't (and possibly can't, like GPUs) run Linux.