Big Tech companies are increasingly adopting vertical integration strategies similar to IBM's in the 1960s, as they develop custom AI chips, own data cables, and build proprietary hardware to control their AI and cloud infrastructure. Alphabet (Google), Meta, Microsoft, and Amazon are all investing heavily in AI hardware, with predictions that the market for custom AI chips will reach $122 billion by 2033. This shift echoes IBM's historical success with vertical integration, which later declined as costs and competition increased. Today, these tech giants face the 'innovator's dilemma,' where their existing profitable models—advertising for Google and Meta, hardware for Apple, and commerce for Amazon—are threatened by AI-driven disruption. Google, which pioneered foundational AI technologies, risks cannibalizing its ad revenue with AI-enabled search and commerce tools like Gemini, but struggles with transforming its core business. Meta continues to rely heavily on advertising, leveraging AI to optimize ad performance, while failing to develop independent commerce platforms. Apple, heavily dependent on hardware sales, has struggled with AI innovation, evident in its Siri assistant and autonomous projects, which have not met expectations. Amazon, with its extensive e-commerce and cloud infrastructure, is exploring AI-powered agents like Alexa to reclaim lost ground, but faces challenges in expanding beyond its ecosystem. Microsoft maintains a strong AI presence through Azure and partnerships with OpenAI, yet it has not fundamentally changed its business model. The overarching question remains whether these companies can adapt quickly enough to use AI as a disruptive force or risk obsolescence, as history shows that reluctance or inability to pivot can lead to decline.