The Information’s mutual dependencies matrix reveals the hidden power structure of AI: a web of interdependencies where no single player controls the stack, but some positions offer far more leverage than others.
The matrix maps who depends on whom across the AI value chain—from chip manufacturers to cloud providers to model developers to application builders. The picture that emerges challenges simple narratives about AI market structure.
NVIDIA’s position looks dominant—nearly everyone depends on their chips. But NVIDIA depends on TSMC for fabrication. TSMC depends on ASML for lithography. The vertical dependencies create mutual vulnerabilities throughout the stack.
Similarly, model providers depend on cloud infrastructure. Cloud providers depend on modelinnovation to drive compute demand. Application builders depend on model providers. Model providers depend on application success to demonstrate value. Each dependency creates leverage—and exposure.
Strategic Implications
In a web of mutual dependencies, no one wins by destroying partners. This creates unusual strategic dynamics: competitors must cooperate, monopolists must nurture ecosystems, and disruptors risk breaking dependencies they themselves rely on.
The coopetition framework applies: AI leaders simultaneously compete and cooperate, managing relationships that are simultaneously adversarial and symbiotic. Pure competition strategies fail; pure cooperation strategies leave value on the table.
Gennaro is the creator of FourWeekMBA, which reached about four million business people, comprising C-level executives, investors, analysts, product managers, and aspiring digital entrepreneurs in 2022 alone | He is also Director of Sales for a high-tech scaleup in the AI Industry | In 2012, Gennaro earned an International MBA with emphasis on Corporate Finance and Business Strategy.
