Transformers are only a part of AGI, just like “saying the most logical next word” is only a part of the human mind. Transformers, which need not be used exclusively on language, are a great way to dial in successful actions from the infinity of possibility. They are not a great way of vetting those actions before you implement them. They are a necessary part of AGI, just like the human use of language was a necessary part of us getting to the era of space ships.
I don’t think investors are being sold the idea that infinite scaling transformers are the end of the road. From what I’ve seen, anthropic and openai have both been desperately trying to add systems to their transformers to make them more capable, while also continuing to scale transformers to find out where that particular technology plateaus. This has been their path since GPT4 was released.
I think your assessment is an extreme oversimplification which naturally looks like it will fail because you left out 90% of what is going on. Are you only following the media meant for the general public, and the PR statements from AI companies? Like most scientific or businesses endeavors, that’s been dumbed down to the point of being useless, just so the average person can understand what’s happening, or is simply advertising.