"How many multi-million-dollar funded startups did this just absolutely obsolete?"

The play with AI isn't to build the tools to help businesses make money, the play is to directly build the businesses that makes the money.

In practice this means, don't focus your business model on building the AI to make text to video happen. Your business model should be an AI studio, if the tech you need doesn't exist, build it.... but if you get beat by someone with more GPU's and more data, cool use the better models. Your business model should focus on using the capability not building it. It's proving quite hard to beat someone with more GPU's, more data, more brain power.