In this article we discuss why artificial intelligence should be understood not as a standalone sector but as a foundational infrastructure layer, similar to the internet, and examine both the real value it is creating across industries and the illusions that risk distorting decision-making. We explore how framing AI as a vertical misrepresents its horizontal impact, why valuation discipline is becoming critical amid early-stage excesses, and how the next wave of opportunity will emerge from solving AI-induced challenges such as unsustainable compute costs and the erosion of digital trust.