If you want to get rid of patents and copyright then entire industries would have to roll over and die (the music industry, publishing, Disney, etc).
Also, people only invest in things if there is an expectation of profit. Your model for raising capital does not make sense.
Property rights are not the only way to create profit. That's a very capitalistic mindset. Plenty of societies have functioned adequately without our current form of property rights, either physical or intellectual. Before AI, it was the internet that really challenged intellectual property rights. When information flows freely, what happens? Example: many musicians make their pay by performing live, not from royalties on the properties they sold to producing companies.
Intellectual property rights rewards the first-comers, not the innovators. For example, you give a drug researcher a patent on their discovery, that discourages innovation on making that new drug cheap and readily available. The same can be said about AI models: the heavy investments by OpenAI and Anthropic to make these frontier models forces them to charge pretty expensive prices, but if we only had them, we would not have much innovation in making fast tiny models that are more cost and energy efficient. That drive comes from China because they are resource constrained and price-conscious.