Global AI Race Fuels Vertical Integration as AI Investment Strategies Shift

The global scramble for AI leadership has intensified, shifting from a pursuit of raw processing power to a strategic drive for end-to-end control of the AI technology stack. Major nations and tech giants in the Asia-Pacific (APAC) are increasingly investing in or developing every component, from advanced semiconductors to cloud computing infrastructure, aiming to reduce reliance on external suppliers and secure their digital sovereignty. This vertical integration approach signals a re-evaluation of globalization, with a renewed emphasis on domestic capabilities and strategic partnerships.

A prime example is SoftBank Group Corp.’s recent strategic maneuvers. In August 2025, SoftBank announced a $2 billion investment in Intel Corp., a move aimed at deepening their collaboration in the semiconductor sector. This investment underscores SoftBank’s ambition to secure access to critical hardware, particularly as its highly anticipated Stargate AI data center project, a joint venture with OpenAI, has reportedly faced delays and partner alignment issues. These setbacks have highlighted the complexities of large-scale, international AI infrastructure market opportunities, pushing SoftBank to strengthen its foundational supply chains.

Similarly, in India, Reliance Industries Ltd. is executing a comprehensive vertical integration strategy through its digital arm, Jio Platforms. At its Annual General Meeting in late August 2025, Reliance unveiled its Jio AI Cloud and JioPC initiatives. This ecosystem approach, encompassing network, cloud, and end-user solutions, is a direct bid to control the entire digital value chain within the India AI investment market.

Government bodies across Southeast Asia in charge of AI investments are keenly observing these developments. In Vietnam, the government is actively preparing a comprehensive framework to select investors in high-tech sectors, following the passage of the Law on Digital Technology Industry in mid-2025. This forthcoming legislation, expected to take effect in January 2026, aims to define how AI and other digital technology investments align with the national strategy. Policymakers on AI in Asia are a key segment of our audience at the upcoming AI Week Asia 2025 Investor Day.

These initiatives collectively illustrate a strategic pivot. By reducing dependency on a fragmented global supply chain, nations and leading companies are positioning themselves to dictate the future of AI investment strategies in Asia, with profound implications for international trade and geopolitical influence.

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Rex Sayson

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