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Google’s AI Expansion: A New Era of Vertical Integration in Big Tech

June 4, 2025

Google has introduced its new ‘AI mode’ on its US search engine, letting you chat with what feels like an on-hand expert across a range of topics. This step is part of a broader strategy to master every link of the AI chain—from custom-built chips to essential products like Maps and Gmail. It’s a confident move that underlines Google’s commitment to vertical integration.

Vertical integration means Google controls its AI supply chain end‐to‐end. Its tensor processing units boost hardware performance, while a proprietary cloud and focused R&D energise developments in machine learning and robotics. Competitors such as OpenAI (which recently snapped up a hardware start-up) and Amazon are making similar plays. While managing everything in‑house can cut costs, it also risks concentrating power and raising entry barriers for smaller innovators. If you’ve ever struggled with opaque data practices, you’ll appreciate the challenge of balancing efficiency with open, transparent regulation.

 

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