I have played over a dozen games and I have never seen the AI form an alliance on its own. This seems like it is definetly unbalanced in the player's favor if the AI is incapable of initiating one. It creates obvious exploitation tactics such as spamming cheap ships in the early going to get the + modifier in the military strength to raise disposition for alliances. If you manage a couple allies its usually as good as 3 on 1 if anyone dares attack you, and less frequently they jump in if you go on the warpath yourself. It has already been brought up that an ally is good for the entire game in as far as loyalty. So why is the AI unable to form alliances itself?