"The first to AGI, or a close approximation, is the winner. "

But why? Assuming there is a secret undiscovered algorithm to make AGI from a neuronal network ... then what happens if someone leaks it, or china steals it and releases it openly tomorrow?

So, what will AGI be able to do that will make that bet pay off? Human-like intelligence is already very common. Vastly better than human intelligence seems like it would be worth the expense, but I don't know where we'd get suitable training data.

Are these investors high? Or just insane?

This depends on a fantasy cascade of functional consequences of AGI, whatever that acronym even means anymore.

It is just cargo cult financing at this point.