US SOLIDIFIES AI LEAD THROUGH VERTICAL INTEGRATION

Lei Qiu, head of thematic equities at Allianz Bernstein, outlined how US tech firms are consolidating AI capabilities across their operations to secure advantages in innovation and infrastructure. The approach addresses concerns about supply chain fragmentation, particularly around semiconductor availability and manufacturing capacity. By controlling more of their AI development pipeline—from chip design to software deployment—American companies reduce dependency on external suppliers and geopolitical disruptions. Despite tensions between Washington and Beijing affecting global tech competition, the US benefits from established leadership in AI architecture and rapid innovation cycles. Major tech companies continue investing heavily in proprietary AI systems and infrastructure buildout. The strategy reflects a broader shift toward self-sufficiency in critical tech sectors, balancing innovation speed with supply chain resilience. However, vertical integration requires substantial capital investment and expertise concentration among a limited number of firms.