Betting on AI would be "hire some AI engineers and see what they can do", not "get rid of some engineers and see what happens". I think what you mean is "scapegoating AI".

I think there's also a pinch of "we've run out of ideas / high margin projects" or "we're tired of funding 'platform 2.0' projects that end up creating more problems than they solve".

But generally I agree with your assessment. Especially the Musk effect I think gets underplayed.

Betting on AI could mean a pause on hiring junior developers while we wait to see how AI plays out, though.