Visualized: The AI Ecosystem

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June 7, 2025

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The following content is sponsored by ACT | The App Association

The Decoding the AI Economy Series unpacks key players, diverse markets, and history of AI investments in the U.S. and Europe.

Visualized: The AI Ecosystem

Key Takeaways

• Artificial intelligence (AI) companies exist in nearly every corner of the technology space.
• Some companies support the AI ecosystem on multiple levels. IBM, for example, is both a chip and computation supplier.
• Many smaller AI businesses build upon the foundational models supplied by incumbents like Google, Microsoft, and OpenAI.

In April 2024, the UK Competition & Markets Authority (CMA) reported that foundational AI models would allow incumbent companies to control AI markets and potentially squash any healthy competition.

But the reality is much different. The AI ecosystem comprises several distinct, competitive, and interconnected layers, each with a vital role to play.

For this graphic, the second in the Decoding the AI Economy series, Visual Capitalist joined forces with ACT | The App Association to explore the AI ecosystem in depth.

Dynamic, Competitive, Misunderstood

Each layer in the AI tech stack is unique, but all are vital for the overall success of the ecosystem.

In the table below, compiled by the App Association, we show representative businesses across every layer of the ecosystem:

It’s clear that the incumbent companies have an important place in the ecosystem. They provide vital and often investment-intensive sections of the ecosystem, such as chip production or the development of foundational models.

But that’s just one small part of a large and interconnected system.

AI startups like Databricks, for example, which recently secured a $10 billion funding round, prove that other innovators are competing within the ecosystem.

Exploring Diverse Markets

While the AI ecosystem is broad and diverse today, it can only remain so in a regulatory environment that rewards risk-taking and innovation.

To do that, regulators and policymakers must look beyond the headlines and see the ecosystem for what it is: dynamic, decentralized, and full of promise.

Newer companies contributing to AI development have the best chance to succeed by leveraging the pro-competitive role major firms play in providing essential services and sources of capital for the entire ecosystem.

Are you interested in exploring the world of AI further?

The App Association will release its comprehensive whitepaper on June 12th, 2025, examining how premature or overbroad antitrust action could jeopardize AI innovation and outlining a policy approach better aligned with the realities of emerging technology.

If you can’t wait till the 12th, you can learn more about the AI economy here.

Related Topics: #tech #ai #companies #tech companies #chips #partner ##partner #AI companies

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