Most well-educated persons have read far fewer books yet are presumably more intelligent than any LLM. This is a hint toward solving the problem of AI: the industry would do well to pay attention to that hint.
In other words, the industry should concentrate on creating an AI that has a far more limited corpus. Of course, maybe they are doing so but not telling anyone about it. I certainly wouldn't reveal my best ideas. At the same time one must remember that, only a few centuries ago, people learned to read English by studying the King James version of the Old Testament, a single book [not to say that a lot of work didn't go into that particular text: it really is a work of art in the English language].
Perhaps the AI industry must maintain a illusion for the unwashed masses (and especially investors) that each generation of LLM AI must always be bigger to reach AGI, whereas the truth is that some guy in his study will find the key that ties LLMs to human intelligence and will, any day, render the entire industry obsolete.