Proof. Suppose is not conservative. Then to prove the lemma, it suffices to exhibit a presentable -category also cotensored over and a nontrivial right adjoint cotensored over such that is trivial.
Define to be the full -subcategory of of -acyclic objects, that is, objects such that is trivial. Our first task is to show that is indeed presentable.
Observe that is equivalent to the fiber product , where the limit is computed in the -category of -categories. Recall by [L2, Proposition 5.5.3.13], the natural functor preserves limits. Furthermore, the forgetful functor also preserves limits since it has a left adjoint (given by induction).
Since the functor preserves colimits and is -linear, we may regard it as a morphism in . Thus can be computed as a limit in , and so can be regarded as an object of . In other words, is presentable and furthermore tensored over . Finally, since is tensored over , it is automatically cotensored as well.
Now it remains to show that the inclusion is indeed a right adjoint and cotensored over . Since preserves all limits and colimits (and in particular -filtered colimits), the adjoint functor theorem applies. Finally, since is cotensored over , is as well. โ