Vertical integration

Vertical integration in robotics is the strategic choice to own multiple layers of the value chain — typically some combination of (a) the AI / control stack, (b) the hardware design, (c) the manufacturing, (d) the deployment operations. Distinct from horizontal integration (multiple products in the same layer) and from the conventional supply-chain model (each layer outsourced to specialists).

The distinction matters because vertical integration is the dominant strategic posture across physical AI today. Tesla builds its own vehicles, its own AI stack, and its own deployment infrastructure. Figure builds its own humanoid hardware, its own AI (Helix), and its own manufacturing (BotQ). Waymo builds its own AV stack and its own deployment operations but partners with Magna and JLR for the vehicles. The strategic axis predicts capital intensity and time-to-market — and the brain vs hardware split is one specific slice of the broader vertical-integration question.