Fully Virtualized Gaming Server?

For years I’ve had a dream of building a rack mounted PC capable of splitting its resources to host multiple GPU intensive VMs:

• a few gaming VMs
• a VM for work that can run Davinci Resolve and Blender renders
• an LLM server
• a Stable Diffusion server
• media server

Just to name a few possibilities…

Everytime I’ve looked into it, it seemed like the technology just wasn’t there yet. I remember a few years ago Linus TT took a shot at it, but in the end suggested the technology (for non-commercial entities) just wasn’t in a comfortable spot yet.

So how far off are we? Obviously AI focused companies seem to make it work, but what possibilities exist for us self-hosters who might also want to run multiple displays in addition to the web gui LLM servers? And without forking out crazy money for GPU virtualization software licenses?