It's more game theory. Regardless of the chances of AGI, if you're not invested in it, you will lose everything if it happens. It's more like a hedge on a highly unlikely event. Like insurance.

And we already seeing a ton of value in LLMs. There are lots of companies that are making great use of LLMs and providing a ton of value. One just launched today in fact: https://www.paradigmai.com/ (I'm an investor in that). There are many others (some of which I've also invested in).

I too am not rich enough to invest in the foundational models, so I do the next best thing and invest in companies that are taking advantage of the intermediate outputs.