LLMs are capable and able to produce value. There's no questioning that - anyone who says otherwise is in absolute denial.

The problem is.... the amount invested makes zero sense and the returns needed to justify the valuations of these firms won't come.

The players in the Tech industry in general have gotten way too ahead of themselves. When this all settles the big danger for MSFT, Google, Meta etc is that investors will trust them with the cash on the balance sheet less - demanding more cash return. Apple will come through this period very strong and end up looking like they played a genius move keeping out of it.