I think you're right, but I would qualify that the AI is bullshitting in the same way that a child's drawing of a stick figure, house, and smiling sun is bullshit designed to get approval. The AI is giving symbols--very visually stunning ones, to be sure, but symbols nonetheless--of what it is prompted to create, just like a child learns that "circle with lines coming out of it" is a symbol that can be read as "sun" and praised by adults.