Summary: Investors don't know where to put their money and they're scared
I know plenty of computer barely literate people who use chatGPT and other generative ai tools daily.
The biggest problems I see though are openai and Microsoft essentially competing with people using the API to create products. If you build an app using openai and they add every feature that sets your app apart, you might as well throw in the towel. investors who bought into your startup when you thought there was a moat will lose.