The difference is the demand for paperclips is already met. Each additional paperclip is almost pure waste of resources.

The demand for silicon, even outside AI is not, and advances in silicon are going to benefit pretty much every industry in the long run, even if during the short term they are distorted by the AI demand.

Well we have 8 billion non-artificial general intelligences walking around on earth yet we’re dedicating enormous resources trying to electronically replace them. This is in the name of tech companies stealing value rather than spreading it out more evenly.