Al-Qa`ida in the Arabian Peninsula (AQAP) has changed. So too must the counterterrorism community’s approach to it. Beset by infighting, riddled with spies, decimated by drones, and instrumentalized by Yemen’s warring parties, the jihadi movement in the region has fragmented. The conventional labels of al-Qa`ida and the Islamic State have started to lose meaning, and this necessitates a new typology of jihadi militants to account for splinter groups that have forged alliances that may seem contradictory. AQAP is degraded but not defeated. A ceasefire in the overall war will not prevent, and may even fuel, a comeback.