Know What's Happening in SaaS

Stop Calling It 'The AI Bubble': It's Actually Multiple Bubbles, Each with a Different Expiration Date

The AI boom consists of three distinct layers—wrapper companies, foundation‑model providers, and infrastructure—each with its own risk profile and timeline. Wrapper startups that merely repackage APIs are expected to implode first, as large platforms absorb their functionality and margins evaporate. Mid‑tier foundation‑model firms will undergo consolidation between 2026 and 2028, leaving a handful of well‑capitalized players. In contrast, the underlying hardware and data‑center infrastructure is likely to retain long‑term value despite short‑term overbuilding.