30 year IT Professional here.

The thing about AI that most people do not understand is the sheer amount of processing power required and just how much that requirement impacts everything. Entire data centers dedicated to one thing that can require the output of a power plant and the associated cooling requirement. I believe Microsoft is in the process of reactivating Three Mile Island TMI-1 reactor. TMI-2 was destroyed in an accident in 1979.

For what? What is it actually doing that is truly worth investing those kind of resources?

That's not even considering the financial investment. Which has resulted in tech companies taking a "throw everything against the wall and see what sticks" tactic to get it to start making money. Tactics like that usually result in a bubble where the technology is perceived to have more value that it really does. The problem with this is people won't spend their money on something that does not return their investment. So it's a matter of time that we have these huge data centers sitting all over the country abandoned.