Okay, I know it's a kinda harsh title, but it's what I call it. I use this whenever I get the opportunity!
Keep an eye on the treaties page. When two AIs ally with each other, get ready to make some serious BCs!
First off, you need to be at least as strong militarily as one of the AIs. The reason is you have to be able to survive for a while at war, and if you are much weaker this will likely get you wiped out.
Go to war with the stronger of the allied AIs. It is best if you can Alpha Strike them, but just be sure you do some serious damage to them. The AI's weaker ally will eventually enter the war. Hopefully, you've dealt a serious blow to the original victim, so you can begin dealing with the other AI. Hurt them badly. Enjoy dominating them. :SINISTERGRIN:
Oh, okay, back to the strategy! 
Demand peace from the original AI. Don't ask for techs or planets or ships, just take the money, and try to get as much as possible for 10-15 months. DO NOT DEMAND PEACE FROM THE OTHER AI!
Continue dismantling the AI you are at war with. Eventually, the allied AI will re-enter the war, but now significantly weaker economically. This starts a pattern of "raping" the AIs. Reverse the victims, making sure to stay at war with one of the AIs at all times. Eventually, you will have bankrupted them (since they continue to pay tribute even after they go back to war with you). You get rich and they get dead. 
This is a fun way of dispatching two AI empires and a great way to pad your treasury!
          
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| eventually just cost of them will start to eat into their economy and you dont have to worry about building his military |
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I like that. Can't wait to try it out. The AI really needs to learn to disband ships it doesn't need.
   
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| ... It destroys 2 empire's trade routes with you. Why not just attack a single empire you don't like? This way you beat it up a bit but don't loose valuable trade income with another empire. |
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It's true that you lose trade income, but I usually don't worry much with that. You've eventually got to lose that trade income, anyway, if you're going for a military victory. But since I focus all trade with minors, I usually still have a pretty decent income. And remember, trade benefits both empires, and I prefer not to have enemy AIs benefit from trading with me.
Also, the peace treaties give huge amounts of BCs that you can't get with trade. I can usually "rape" them for 1000s of BCs for 100 months, if this strategy is done correctly.
But, if somebody is really struggling with their economy in the early game, yes, this strategy might not be for them.
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I enjoyed the "Alliance Rape" today. I had both Yor and Arcean on the ropes before it happened. It was quite fun toying with them while I was wiping out their economy. I recieved 3 planets, and Tons O'Cash. 
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| Yeah I've been hoping Brad addresses this little AI ploy soon |
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I would like it fixed. This shouldn't happen. As it is, most games that I play are over before any alliances occur.
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| Wow. Aggressive. I usually have a few alliances or something going on- but then I like to manipulate the political landscape |
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Dearmad, I mostly play with all AI's set to Normal because I find that the most comfortable to play. The problem for me now is I have a strategy that really works the AI's over. 
I have been dabbling with the AI's set to bright just before v1.10 came out. My strategy works with the AI at Bright but I have to be really aggressive and sometimes I just play lazy.
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