I'd say so called AI is largely a scam. It's wobbly databases with non-deterministic query languages dressed up as a substitute for intelligence. Email is similarly a scam. Through mail you send someone an item, which might or might not have some script on it. Email is very different, and it's largely used for spam, even though the name seems to say it is very similar. Is this what you call progress?
No, I'm pointing out that Nvidia are supplying criminals and tyrants with the tools they need for their abusive and oppressive activities. I do not expect your mood to change from having this pointed out, rather the opposite, I expect you to already be somewhat aware of it. Personally, I try to avoid doing business with such people, and I would prefer to not be dependent on their enablers, though that is almost impossible for systemic reasons.
It's the dissonance between promise and delivery that make the term appropriate in my opinion. There's nothing intelligent about AI, and you can't transfer a package to a friend through email.
And, well, yes, one might argue that capitalism is basically a scam. Instead of serfs and slaves that were traded and exploited personally, we're now being traded and exploited collectively. I think Engels said this more succinctly at some point.
In general prisons are suppliers of cheap labour, and don't allow people to actually rot in them, though some inmates aren't actually supplied as labour, for reasons. As the person you're likely alluding to shows, grudge-laden manifestos and bombs don't do much to change society. It's a better idea to get organised around mutual aid and strikes in a wide sense.