It isn't nonsense. If AI was such a broad umbrella term, why would companies be tripping over themselves to use it? If it meant video game NPC level of intelligence, nobody would be in a hurry to adopt it. It's very clear that when Nvidia or OpenAI use the term AI, they really want you to think these LLMs are actual human level intelligence. That is why they are doing it.

When I use nonsense like "real AI" I think you very well know what I mean, and don't find it in any way confusing or ambiguous.