Ignacio, I am sure there is arrogance inherent in SV. this how you get the money after all, not be being timid.

Still I feel your claim that everyone believes no algorithmic advancement is needed is not fair. Who is saying this? but understand the number of researchers working on these algorithms is easily 10x or 100x larger than the number working on them in 2017 when transformers were invested. How long do you think it will be? I think handfuls of years. And I don't think the FAANGs that are tossing all of this money are saying no alg advancement is needed. They are saying something different:

There is a $1-10T pot of gold that will be split among the winners, and we have the money to out invest others in order to get to that pot of gold. Its like with self driving.... there is a ton of over investment, and many folks will burn out and loose. **BUT** for the few winners the payout will be a flywheel that ensures no one can displace them and a huge market.

Right up until AGI owns us, it will become more ubiquitous than the internet in dis-intermediating all human commercial activity. Freakin' ALL of it! It will be better to have your AI interact on your behalf in so many ways. Those few that provide those services will split those trillions of dollars in value.

I remember the days of folks laughing at Amazon's stock price. A. NINE-HUNDRED x PE ratio they scream.... these investors have LOST THEIR MINDS. And those investors were making a bet that Amazon would be the winner, and a bet on the size of the pie slice if one dis-intermediated product sales and distribution with an online solution. Well the pundits were wrong and the investors were right.

This disintermediation makes the amazon dis-intermediation pale in comparison.

So (1) it is a big and risky bet. so (2) there will be many losers. So (3) alg advancement are definitely needed, and (4) those that keep putting chips on the table will be the ones that collect the multi-trillion dollar jackpot.

(and the jackpot is not the $20/month GPT can charge.... rather it is getting to be the new gatekeeper that replaces Google Search and Amazon checkout connecting all humans to all commercial activity, among other even more profound transformations)