The strategy is throw a little bit of money at everything, hope one of them will become a unicorn, everyone gets richer.

Rinse and repeat.

You're right though ... these YC batches are not what they used to be. AI is hot right now, so it seems YC is throwing money at anything that seems like it can at least actually do something (not that it is necessarily good). If that product doesn't get hot, who cares? Plenty more money to go around on the next batch, because one of them probably will!