YC hasn't changed. This kind of thing happens with every major tech wave, and this is the majorest one in a long time.

Right now the waters are all muddy with hype. The sediment will eventually settle and we'll find out which lasting companies have emerged - same as dotcom eventually turned into Amazon etc.

(I/we didn't flag your post btw)

In my experience there's also a ton of B2B demand for AI right now. I've been working with AI in this space for the past 4 years and the desire from merchants to use AI tools has really ramped up. Supply follows demand to a certain extent.