The article tracks how AI competition has expanded from model performance to controlling hardware, data centers, models, and applications. It shows how major players—model-first labs, application startups, cloud providers, chip makers, and Google—are moving up and down the stack to protect margins and capture value.

The AI boom is deflating rather than crashing, with distinct market tiers emerging among companies in the sector. While hyperscalers like Microsoft and Amazon remain strong, many startups face existential challenges, and investors should seize opportunities by targeting resilient companies and sectors related to AI infrastructure and automation.