With a couple niche exceptions, AI hasn’t started making money. What it has done is attract venture capital investment.
Venture capitalists are driven by a fear of missing out on the next big thing. A billion dollar score pays for a thousand bad million dollar bets, and AI that lives up to the hype could be worth trillions. This is also why every existing tech company is scrambling to add an AI thing to its products even where it makes no sense.
Here’s an explanation from the Associated Press. The penalty is usually a fine, which impacts stockholders by making the stock less valuable and could lead them to remove board members or demand the termination of executives. It’s rarely used, but there is a corporate death penalty.