Executive Summary Over the past two decades, Silicon Valley’s formula for success has been built on the belief in staying asset-light. The scalability of software and the power of network effects became the most efficient levers for growth, driving companies to pursue speed, scale, and operational lightness. Generative AI, however, is disrupting this model. From Microsoft and Amazon to Google, Meta, Apple, and Tesla, the world’s largest tech companies are collectively returning to a world

Executive Summary In less than three years, the focus of the AI race has shifted three times. It began with a contest to build the largest and most capable models, moved into a rush to secure computing power, and has now arrived at a phase defined by efficiency, the rise of AI agents, and the first real tests of commercial viability. Based on insights from the most recent earnings calls of six leading technology companies