AIBaseThe AI Stack Explained: Models, Infrastructure, Tools and Applications
The AI market is a stack of interdependent layers.
- The AI market is a stack of interdependent layers.
- Companies can compete in several layers at once.
- Understanding the stack helps explain partnerships that also look like rivalries.
Layer 1: compute and infrastructure
Chips, data centers, networking, cloud platforms and power form the physical foundation.
Layer 2: models
Foundation-model companies turn compute and data into general capabilities that other products can use.
Layer 3: developer and orchestration tools
APIs, vector databases, agent frameworks, observability and security tools help teams build applications on top of models.
Layer 4: applications
Consumer assistants, coding tools, design software and vertical AI products package the technology into workflows users can buy.
Why it matters
The AI market makes more sense when companies are mapped by layer—and when readers notice which firms are expanding vertically into the layers above and below them.
Explore the next step
Put this topic in context with the model library, tool profiles and comparison board.
Sources & notes
Last updated 1 Oct 2026. Editorial policy · Corrections policy
