This isn't the condemnation of AI that you think it is.
When you are building an industry, you don't want to be in a "cash cow" phase. Because the person who is willing to reinvest profits (and further: seek and sink investments) into growth and innovation is going to eat your lunch.
~8 years ago my BIL condemned Tesla with "they aren't profitable" and I explained this to him. Now they're a trillion dollar company.
Uber tried that and failed. Now they cost as much as normal taxis if not more. Airbnb tried that and now cost as much as hotels if not more.
And tesla is a trillion dollar company on paper only. It can vanish into thin air in a day.
I'm describing business. Period. It's incredibly rare to encounter products above a fairly small revenue level (niche products), that haven't come from a company that spent significant time reinvesting profits and therefore being unprofitable. Same for using outside investment.
Yes, there are companies who have burned outside investment on things that didn't pan out.
Love them or hate them, the AI companies are doing a huge amount of research. And research companies have always cost more than they've generated in revenue.
https://en.wikipedia.org/wiki/Onion_Futures_Act
And it is just one of several "business" methods that are widely regarded as abusing the rules/manipulation and regulated or outright banned.
Your AI companies are not just reinvesting profit, they are burning a fuckton of predatory investors'money to try to drive adoption, but also competitors to bankruptcy.