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Microsoft Is Winding Down Oracle Deal to Rent AI Cloud Capacity, Reports Say
Microsoft is shifting spending to its own data centers and a smaller set of suppliers as older Nvidia chips no longer fit its needs.
- On Friday, Microsoft began winding down an arrangement to rent AI computing from Oracle as part of a broader reassessment of more than $80 billion in cloud partnerships, Bloomberg News reported.
- Initiated in 2023 to support Microsoft's AI-powered Bing search engine, the contract involved older Nvidia chips that no longer met the company's evolving technical specifications, according to the report.
- Oracle resold the capacity at a 20% premium to other customers under long-term contracts, with most GPUs covered by these renewals at least four years old, the company said.
- In afternoon trading, Oracle shares fell nearly 3% while Microsoft stock remained little changed, though the cloud provider maintains its existing hardware continues attracting significant customer interest.
- To address high costs and delays, Microsoft is increasing oversight of data center construction by sending employees to supplier sites, affecting partnerships with Nscale and Nebius.
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(San Francisco = Yonhap News) Correspondent Kwon Young-jeon = Microsoft (MS), one of the world's top three cloud service providers, has completely renewed its contract to lease computing resources from Oracle...
·Seoul, Korea (the Republic of)
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Older Nvidia chips are not supposed to have met the requirements of the Windows Group. According to Bloomberg, Microsoft is also reviewing other cloud partnerships in billions.
·Düsseldorf, Germany
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Coverage Details
Total News Sources27
Leaning Left1Leaning Right4Center7Last UpdatedBias Distribution59% Center
Bias Distribution
- 59% of the sources are Center
59% Center
C 59%
R 33%
Factuality
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