The hypothesis is the AI slop will improve. A bit like 1990s internet where there was a lot of futzing with dial up modems to eventually get a fairly crappy web page. But you could tell it would get better.

It is rather comical.

Everyone knows that panning for gold is a fools game so we have a gold pan/shovel bubble.

It is like having a massive lumber bubble and calling it a real estate bubble because someday we might actually build those houses.