JPMorgan's latest report indicates a significant shift in software profits from the model layer to the infrastructure layer. The report highlights examples such as Starbucks developing its own AI tools to replace Microsoft and IBM software, and Microsoft using its MAI to replace OpenAI and Anthropic models. Additionally, Meta is expanding its cloud business to sell AI compute, further illustrating this trend. The report also notes that DigitalOcean's Q2 performance obligations surpassed $800 million, marking a tenfold increase year-over-year, with AI inference playing a major role. Over half of Cloudflare's requests now come from AI agents, prompting the launch of a crawler paywall to generate new revenue streams. Morgan Stanley suggests that while model providers face replacement pressures, demand for infrastructure remains robust, with enterprise customers gaining more bargaining power. The investment focus is shifting from models to infrastructure and intermediary layers.