Shares of Oracle today falling a bit following that 35% surge yesterday on its massive revenue backlog.

And we now know where the majority of that revenue will come from.

It's OpenAI, that $300 billion deal for compute power among the largest cloud contracts ever signed.

Our McKenzie Sagalos has more on that in today's tech check.

Hey, Mac.

Hey, Carl.

So I've been speaking to VCs out here in Silicon Valley about how OpenAI is now bankrolling the AI trillion dollar club. And they're trying to make sense of this loop, the sky-high fundraising, spending so fast that it clogs, supplier backlogs, and pumps up the market caps of legacy giants who have rebranded themselves as an

AI play. Now, one investor telling me that the real story is the power struggle with NVIDIA,

saying that OpenAI feels threatened and wants to diffuse the dynamic by making some of its

smaller rivals a lot stronger. In the last week, OpenAI has fired two shots in that direction.

A $10 billion

broadcom partnership to build a GPU rival, and then this massive Oracle deal. Both are meant

to spread leverage across the stack. Now, other VCs were marveling at Sam Altman Sprawl.

One investor saying that he is really trying to out Elon, Elon, pointing to his custom chip ambitions,

and that top secret consumer device being built in a lab under Johnny Ive. Skeptics say the spending

math does not work. Most VCs are priced out in a $500 billion valuation. They say that sovereign

wealth and Middle East capital is keeping this

entire ecosystem afloat. Another VC underlined the tightrope that everyone is walking here.

The numbers look impossible on their face, but the constraint is compute and energy. So yes,

it is a gamble for these hyperscalers, but that trillion-dollar cap-x wave has to happen

in order for this AI thesis to clear.

Now, the next test is whether OpenAI can lock in more funding and nail its agenic strategy

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