I think all the recent AI slop dominated batches will be their downfall in 2-3 years time when they all become junk and the AI-hype is over.
Isn't this what an early-stage VC firm is supposed to be doing? Lots of investments in companies working in whatever the hot new tech may be. Most companies lose, some break even, one wins so big you forget about the rest.
High risk, high reward, high volume is always how I thought of a firm like YC. And one expects a lot of investments to evaporate to nothing for such an industry.