Big Tech reported solid earnings and is still spending massively on AI.

From Marketplace, I'm Sabrina Benishore in New York. It's Big Tech Week on Wall Street. Yesterday, we got quarterly results from Alphabet, Meta, Microsoft, and Amazon, and they all beat expectations. And shocker, they're all still spending a lot, a lot on

AI. One of the biggest expenses is chips, and that has made NVIDIA, the most valuable company

in the world. Now, other big tech companies want to get in on that action. Marketplaces

Megan McCarty Carino reports.

All of these companies are what's known in the industry as hyperscalers, meaning they operate a ton of

data centers. Right now, almost the entire ecosystem is built on top of invidia's chips.

Chris Miller is an economic historian at Tufts who wrote the book, Chip War.

He says the hyperscalers have been stepping up investments in their own custom silicon.

Both because they want alternatives to NVIDIA, but also because if you build your own chip,

you can specialize it to your particular needs.

Google and Amazon are also providing AI processors to outside customers,

including Anthropic and Meta, which is also building its own chips. Jay Goldberg is a semiconductor

analyst at Seaport Research. There is the potential for this to entirely disrupt

invidia. So I think it is a pretty significant risk.

But right now, there's no such thing as too many chips, says analyst Stacey Razgon at Bernstein Research.

We just need more.

He says the rise of AI agents has sent demand for computing power off the charts.

I don't really care who's winning or losing right now. I think it's the wrong question.

The right one, he says, is whether these companies can build capacity fast enough.

I'm Megan McCarty Carrino for Marketplace.

The price of Brent Crude is it just shy of $117 a barrel.

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