I don't know how to make sense of this level of investment. I feel that I lack the proper conceptual framework to make sense of the purchasing power of half a trillion USD in this context.
Maybe your calibration isn't poor. Maybe they really are all wrong but there's a tendency here to these these people behind the scenes are all charlatans, fueling hype without equal substance hoping to make a quick buck before it all comes crashing down, but i don't think that's true at all. I think these people really genuinely believe they're going to get there. And if you genuinely think that, them this kind of investment isn't so crazy.
I don't immediately disagree with you but you just accidentally also described all crypto/NFT enthusiasts of a few years ago.
The two are qualitatively different.
Even now, as we have fully capable conversational models we don't really have any great immediate applications. Our efforts at making them "think" is yielding marginal returns.