@davidgerard I've got to take exception to one statement you make:
AI is the last game in the casino.
It may be the last game of which we're presently aware. But I'm reasonably certain another grift will come along.
That's a minor nit, and this is good analysis.
NB: WNYC's On the Media interviewed Ed Zitron this past January. He makes a similar case to yours:
Silicon Valley over the years has leaned towards just growth ideas. What will grow, what can we sell more of? Except, they've chased out all the real innovators. To your original question, they didn't know what they were going to do. They thought that ChatGPT would magically become profitable. When that didn't work, they went, "Well, what if we made it more powerful and bigger? We can get more funding that way," so they did that.
https://www.wnycstudios.org/podcasts/otm/articles/brooke-talks-ai-with-ed-zitron (transcript available).