  As frontier AI models advance, policy proposals for safe AI development are
gaining increasing attention from researchers and policymakers. This paper
explores the current integration in the AI supply chain, focusing on vertical
relationships and strategic partnerships among AI labs, cloud providers, chip
manufacturers, and lithography companies. It aims to lay the groundwork for a
deeper understanding of the implications of various governance interventions,
including antitrust measures. The study has two main contributions. First, it
profiles 25 leading companies in the AI supply chain, analyzing 300
relationships and noting 80 significant mergers and acquisitions along with 40
antitrust cases. Second, we discuss potential market definitions and the
integration drivers based on the observed trends. The analysis reveals
predominant horizontal integration through natural growth rather than
acquisitions and notable trends of backward vertical integration in the
semiconductor supply chain. Strategic partnerships are also significant
downstream, especially between AI companies and cloud providers, with large
tech companies often pursuing conglomerate integration by acquiring specialized
AI startups or forming alliances with frontier AI labs. To further understand
the strategic partnerships in the industry, we provide three brief case studies
featuring companies like OpenAI and Nvidia. We conclude by posing open research
questions on market dynamics and possible governance interventions, such as
licensing and safety audits.
