Yes. If it looks like 10000 iq is possible, then money will be thrown at whoever is most likely to achieve it first, and whoever has the most intelligent models right now strongly predicts who will be first.
This is driven by the belief that whoever gets to 10000 iq first will likely dominate the majority of all economic activity, since it will be more efficient to trade with them than with some less efficient (dumber).
This does not depend on traditional economic demand, at some point this becomes a self-fulfilling prophecy.
Instead I can spend far less to use my 200 iq machine that already exceeds everything I could ever want. Im not ever going to personally fund a war of intellegence against other intellegences so anything more is of marginal value. The same reason I don't own a 2,000 horsepower truck or tractor, there are almost no uses for me to want it.
That's the fun part, there is none (in the traditional way of people buying things at least).
> Why would I invest my earning into sustaining a machine that ideally is extracting every cent possible without leeway and funneling it up the pyramid.
You shouldn't! Unfortunately everyone acting in their own self interest still results in this getting funded, since if such a machine were to exist, would it not be better to have a share of it?
I agree with your perspective! I just don't think that, as a species, we have a good track record of saying no to the existence of 2000hp trucks with ALMOST no use.