There's a very nonzero chance that the AI expenses are not a race to recoup investments as they are a bet (with other people's money) that AI will lead to longevity or immortality, a bet made by aging tech oligarchs. Notice that Ellison is betting his entire company on it, which due to his secured debt is the same as betting his personal fortune in the most extreme case.
So they've been sold snake oil. This, along with colonizing Mars and mining asteroids, is complete and total science fiction.