The 'involution-style' AI capital expenditure is over, signaling a hardware pullback. The biggest issue with AI hardware is the industry structure. Previous excess profits came from the 'involution-style' competition among major U.S. companies, all vying for a first-mover advantage in the AI era. Now, the industry structure on the large model side is relatively clear: Anthropic is the leader, OpenAI is second, and the rest aren't even in the same league—they're all sidelined.