I heard an argument that the valuation of AI/ AI-adjacent firms only makes sense if 1) companies grow their aggregate top-line revenues by multiple trillion dollars of 2) this amounts to the potential savings from gutting knowledge-based employment across an economy.

Of course in the long run a chronically underemployed economy will have little demand for products and services, but that is beyond the scope of companies who, in general, are focused on winning short term and zero-sum market capture. However I believe that while a billion dollar valuation is a market and strategy problem, a trillion dollar valuation is a political problem - and I would hope that a mandate of broad gainful employment translates to political action - although this remains to be seen.