I agree, and most of my peers do as well. This is why most of us shifted to funding AI Applications startups back in 2023-24. Most of these players are still in stealth or aren't household names, but neither are ServiceNow, Salesforce, Palo Alto Networks, Wiz, or Snowflake.

Foundation Models have reached a relative plateau and much of the recent hype wasn't due to enhanced model performance but smart packaging on top of existing capabilities to solve business outcomes (eg. OpenClaw, Antheopic's business suite, etc).

Most foundation model rounds are essentially growth equity rounds (not venture capital) to finance infra/DC buildouts to scale out delivery or custom ASICs to enhance operating margins.

This isn't a bad thing - it means AI in the colloquial definition has matured to the point that it has become reality.