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As far as I can tell, it is hype because it is the hot new toy that they can sell.
LLMs are great for tasks like handling natural language data or classifying and identifying semantic meaning of text, but they are NOT good at math, logic, or as a store of facts/information. I think that they do actually deserve a lot of hype for these specific use cases, because they really accomplish these extraordinarily better than previous/traditional approaches.
The big problem is that they are being used for things that they are not good at, like when people ask a chatbot questions they they expect a factual answer to. They are also surprisingly bad at summarizing text (in my opinion and also this has been shown by some studies) despite companies like Google and Microsoft using them for things like summarizing and present search results. I think these companies are ultimately shooting themselves in the foot when they use LLMs for things that LLMs aren't great for.
Think back to when blockchain was being shoved into everything possible, even places where blockchain makes no sense. And before blockchain, it was cloud