AI is the shiny new tech and investors are more worried about missing out on “the next big thing” than they areabout pissing away a few billion dollars. For investors at that level, it’s all a game of numbers. If they invest a billion dollars in 20 different things, and 19 of those things fail, but one has a return of 100 billion dollars, that’s a win.

Sure, there is no guarantee that AI will pan out. But, that’s a very hard thing to determine ahead of time. Everyone thought e-commerce would pay off big in the 90’s/00’s. And it did, for a few companies (Google, Amazon). The rest got slaughtered and we got the dot-com bubble. Then folks expected Crypto currencies, EFTs and NFTs to pay off big. Mostly, that didn’t happen, though they do thrive in a few places. Again, investors just wanted to ride that profit wave.

In short, investments are all about making money. And at a sufficient scale, it’s not about picking winners or losers, it’s about picking everything and making sure the wins from the winners cover the losses from the losers.