AI doesn't really matter. It's just that hectobillionaire bizbros aren't especially smart.
I'd go further. "hecto billionaire" should be declared a mental illness. As you said, it would take them a thousand lifetimes to run out of money. These guys can do literally anything they want, for the rest of their lifetimes. Swim with dolphins. Volunteer at their kids' school. Scuba dive on tropical reefs, ski year-round. Snort coke of hookers' titties. Instead, these guys go back to the office. They read and write articles about "business." They go to stupid meetings with stupid politicians. They give stupid speeches at graduation ceremonies. Clearly, they have serious mental issues.
Therefore, like any other mentally ill person who is a danger to themselves or others, they should be supervised. They should be somewhere safe where they can be looked after and not pose a threat to other people or themselves. Forget "AI psychosis," we should have a broader policy of dealing with "billionaire psychosis." We don't need torches and pitchforks, just a quiet home with nice gardens and big strong fences, where these people can be prevented from hurting the rest of us.