Michael Burry has exited his Microsoft position and closed his short on Oracle, according to a trading update on his Substack page. The "Big Short" investor first disclosed his Microsoft stake in April and recently unwound it, citing "lucky timing" whilst noting his enthusiasm for the company's earnings didn't match the market's response. Burry also closed his Oracle short position, consisting of January 2027 put options, taking "substantial" profit. He left open the possibility of re-entering Oracle puts if volatility decreases. The investor maintained his direct short position in Palantir despite the company's shares surging nearly 30% following blowout second-quarter results. Palantir's revenue nearly doubled to $1.94 billion, beating expectations.

Oracle faces mounting concerns as Wall Street strategist Matt Maley predicts only one or two of five or six major AI infrastructure players will survive the current shakeout. Maley told CNBC that Oracle may struggle to monetise its massive AI spending, particularly after the company admitted returns might not meet earlier expectations. Oracle reportedly faces the risk of losing a major customer, widely believed to be OpenAI, who may walk away from data centre lease commitments. The concern centres on Oracle's long-duration bet. The company has committed to enormous capital expenditures and data centre lease obligations extending 15 to 19 years, whilst some customer contracts run for much shorter periods. Amazon and Google emerge as frontrunners with "the whole package" to survive competitive pressure, according to Maley.

Meta and Oracle present contrasting pictures in AI revenue transparency, according to an analysis comparing hyperscaler spending outcomes. The assessment ranks major tech companies by how clearly they disclose AI-related revenues versus contracted backlogs. Microsoft and Amazon emerge as most transparent. Microsoft reports a $678 billion commercial backlog, up 84% year over year, whilst breaking out Azure AI metrics. Amazon disclosed its custom-chip business surpassed a $25 billion annual revenue run rate with triple-digit growth, naming customers including Anthropic and OpenAI. Alphabet's position is less clear. The company holds a $514 billion cloud backlog and achieved 82% cloud revenue growth, but management explicitly refuses to report standalone AI revenue. The company states AI is integrated across search, advertising, and subscriptions, making direct revenue impact difficult to isolate. The analysis highlights a broader industry challenge: whilst contracted backlogs are readily available, verified AI revenues remain elusive across the sector.