We're in an AI bubble, just a different one than you think. BofA ranked the biggest bubbles of the past 190 years by how completely a single theme took over the market at the peak. We’re back at those exact peak levels. The "AI Big 10" (the Magnificent 7 plus Broadcom, AMD, and Micron) is at 41% of the US market today, level with the dot-com peak. No one wants to hear we’re living in a bubble; they’d much rather be reassured that this time is different. I think it is a bubble, but I also think this time really is different. Let me explain why. I think the froth is in the labs, and the infrastructure trade is intact. The funny part is that the labs aren't even in this chart. OpenAI and Anthropic are private. That 41% is in chipmakers and cloud giants, highly profitable businesses still trading at reasonable valuations. These are not wagers on any one lab winning. They are a broad bet that AI, as a foundational technology, takes off, and the odds of that are super high. I think the labs are the weak spot. The model is becoming the brain, and the value is moving to the harness around it: access to company data, memory, security, permissions, workflow automation, and the ability to take actions inside other apps. Meanwhile, the brain is getting cheaper. Open-weight models now account for roughly a third of routed AI traffic, and in some datasets that slice is growing even faster. Businesses are gravitating toward them because they can tailor the models, keep workloads in-house, and avoid shelling out top-tier API fees on every single job. When intelligence gets cheap and easy to swap, OpenAI and Anthropic can't live on selling model access alone. So they have to move down the stack, sell finished products for coding, cybersecurity, legal research, finance, sales, and customer support. OpenAI is pitching its enterprise platform as the layer that controls and governs a company's agents, on top of the model underneath. Anthropic is doing the same with Claude Cowork and industry tools that do work people used to do inside legal, finance, and enterprise software. That puts both labs in direct competition with their own customers. Wall Street has already shown how it reacts. Anthropic's enterprise agent tools helped set off a software selloff that erased about $1 trillion in market value. The next breakout launch could reignite that trade. Investors should be asking whether OpenAI and Anthropic will swallow software’s most valuable layers and slash the number of subscriptions businesses need. However, they will compete against very well-integrated players who already own the workflows, the customer relationships, the compliance guardrails, and the internal champions. These incumbents are deeply embedded in day-to-day operations, making switching costly, slow, and politically difficult. That’s why I’m not so sure about the future growth trajectory for the frontier labs or Anthropic’s expected IPO at $2T. The labs carry the bubble risk. Their core product keeps getting cheaper, so they're forced to move up the stack and fight software companies for the customer. The chips, power, and data centers don't need to pick a winner. Every model runs on them, no matter which one wins. I’m modeling how a market bubble bursting could impact my portfolio. What worries me is the knock-on effect. If those two giants stumble, a lot of the market could get pulled under with them since so many firms orbit around their success. If you agree, join Milk Road PRO to see how I’m trying to hedge against it: