IDEAS home Printed from https://ideas.repec.org/p/arx/papers/2406.01722.html
   My bibliography  Save this paper

On Labs and Fabs: Mapping How Alliances, Acquisitions, and Antitrust are Shaping the Frontier AI Industry

Author

Listed:
  • Tom'as Aguirre

Abstract

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.

Suggested Citation

  • Tom'as Aguirre, 2024. "On Labs and Fabs: Mapping How Alliances, Acquisitions, and Antitrust are Shaping the Frontier AI Industry," Papers 2406.01722, arXiv.org, revised Jun 2024.
    • Handle: RePEc:arx:papers:2406.01722
    as

    Download full text from publisher

    File URL: http://arxiv.org/pdf/2406.01722
    File Function: Latest version
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Min-Hua CHIANG, 2023. "Taiwan Semiconductor Manufacturing Company: A Key Chip in the Global Political Economy," East Asian Policy (EAP), World Scientific Publishing Co. Pte. Ltd., vol. 15(01), pages 36-46, January.
    2. Chen, Jun & Elliott, Matthew & Koh, Andrew, 2023. "Capability accumulation and conglomeratization in the information age," Journal of Economic Theory, Elsevier, vol. 210(C).
    3. Jean Tirole, 2023. "Socially responsible agencies," Post-Print hal-04164963, HAL.
    4. Dina Pomeranz, 2015. "No Taxation without Information: Deterrence and Self-Enforcement in the Value Added Tax," American Economic Review, American Economic Association, vol. 105(8), pages 2539-2569, August.
    5. Jean Tirole, 2023. "Competition and the Industrial Challenge for the Digital Age," Post-Print hal-04464905, HAL.
    6. repec:cup:cbooks:9780521800952 is not listed on IDEAS
    7. James Campbell & Avi Goldfarb & Catherine Tucker, 2015. "Privacy Regulation and Market Structure," Journal of Economics & Management Strategy, Wiley Blackwell, vol. 24(1), pages 47-73, March.
    8. Oz Shy, 1996. "Industrial Organization: Theory and Applications," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262691795, December.
    9. repec:cup:cbooks:9780521805001 is not listed on IDEAS
    10. Benjamin Golub & Matthew Elliott, 2022. "Networks and Economic Fragility," Annual Review of Economics, Annual Reviews, vol. 14(1), pages 665-696, August.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Cyril Chalendard, 2015. "Use of internal information, external information acquisition and customs underreporting," Working Papers halshs-01179445, HAL.
    2. Arun Advani & William Elming & Jonathan Shaw, 2023. "The Dynamic Effects of Tax Audits," The Review of Economics and Statistics, MIT Press, vol. 105(3), pages 545-561, May.
    3. Vaubourg, Anne-Gael, 2006. "Differentiation and discrimination in a duopoly with two bundles," International Journal of Industrial Organization, Elsevier, vol. 24(4), pages 753-762, July.
    4. Dwenger, Nadja & Kleven, Henrik & Rasul, Imran & Rincke, Johannes, 2014. "Extrinsic vs Intrinsic Motivations for Tax Compliance. Evidence from a Randomized Field Experiment in Germany," VfS Annual Conference 2014 (Hamburg): Evidence-based Economic Policy 100389, Verein für Socialpolitik / German Economic Association.
    5. Colin C. Williams, 2023. "A Modern Guide to the Informal Economy," Books, Edward Elgar Publishing, number 18668.
    6. Aghion, Philippe & Akcigit, Ufuk & Lequien, Matthieu & Stantcheva, Stefanie, 2017. "Tax simplicity and heterogeneous learning," LSE Research Online Documents on Economics 86613, London School of Economics and Political Science, LSE Library.
    7. Marie Bjørneby & Annette Alstadsæter & Kjetil Telle, 2018. "Collusive tax evasion by employers and employees. Evidence from a randomized fi eld experiment in Norway," Discussion Papers 891, Statistics Norway, Research Department.
    8. Annette Alstadsæter & Wojciech Kopczuk & Kjetil Telle, 2019. "Social networks and tax avoidance: evidence from a well-defined Norwegian tax shelter," International Tax and Public Finance, Springer;International Institute of Public Finance, vol. 26(6), pages 1291-1328, December.
    9. Matteo Migheli & Giovanni Battista Ramello, 2018. "The market of academic attention," Scientometrics, Springer;Akadémiai Kiadó, vol. 114(1), pages 113-133, January.
    10. Arun Advani, 2022. "Who does and doesn't pay taxes?," Fiscal Studies, John Wiley & Sons, vol. 43(1), pages 5-22, March.
    11. Bellon, Matthieu & Dabla-Norris, Era & Khalid, Salma, 2023. "Technology and tax compliance spillovers: Evidence from a VAT e-invoicing reform in Peru," Journal of Economic Behavior & Organization, Elsevier, vol. 212(C), pages 756-777.
    12. Sébastien Galanti & Anne-Gaël Vaubourg, 2020. "Unbundling financial services: The case of brokerage and investment research," Economics Bulletin, AccessEcon, vol. 40(1), pages 473-484.
    13. Henrik Jacobsen Kleven & Claus Thustrup Kreiner & Emmanuel Saez, 2016. "Why Can Modern Governments Tax So Much? An Agency Model of Firms as Fiscal Intermediaries," Economica, London School of Economics and Political Science, vol. 83(330), pages 219-246, April.
    14. Kowsar Yousefi & Mohammad Vesal, 2023. "The Double Dividend of a Joint Tariff and VAT Reform: Evidence from Iran," The World Bank Economic Review, World Bank, vol. 37(2), pages 331-349.
    15. repec:idq:ictduk:13726 is not listed on IDEAS
    16. Arbex, Marcelo Aarestru & Mattos, Enlinson, 2020. "Limited tax capacity and the optimal taxation of firms," Textos para discussão 539, FGV EESP - Escola de Economia de São Paulo, Fundação Getulio Vargas (Brazil).
    17. Gillitzer, Christian & Sinning, Mathias, 2020. "Nudging businesses to pay their taxes: Does timing matter?," Journal of Economic Behavior & Organization, Elsevier, vol. 169(C), pages 284-300.
    18. Musharraf Rasool Cyan & Antonios M. Koumpias & Jorge Martinez-Vazquez, 2016. "The Effects of Media Campaigns on Individual Attitudes towards Tax Compliance; Quasi-experimental Evidence from Survey Data in Pakistan," International Center for Public Policy Working Paper Series, at AYSPS, GSU paper1609, International Center for Public Policy, Andrew Young School of Policy Studies, Georgia State University.
    19. Chen, Shawn Xiaoguang, 2017. "The effect of a fiscal squeeze on tax enforcement: Evidence from a natural experiment in China," Journal of Public Economics, Elsevier, vol. 147(C), pages 62-76.
    20. Stjepan Gadzo & Irena Klemencic, 2017. "Effective international information exchange as a key element of modern tax systems: promises and pitfalls of the OECD’s common reporting standard," Public Sector Economics, Institute of Public Finance, vol. 41(2), pages 207-226.
    21. Denis Cogneau & Yannick Dupraz & Justine Knebelmann & Sandrine Mesplé-Somps, 2021. "Taxation in Africa from Colonial Times to Present Evidence from former French colonies 1900-2018," Working Papers halshs-03420664, HAL.

    More about this item

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:arx:papers:2406.01722. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: arXiv administrators (email available below). General contact details of provider: http://arxiv.org/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.