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Microsoft is winding down Oracle deal to rent AI cloud capacity, Bloomberg News reports
Microsoft has turned off rented Oracle capacity as it reassesses billions of dollars in cloud partnerships, after older Nvidia chips no longer met 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, the contract originally provided servers supporting Microsoft's AI-powered Bing search engine, but the older Nvidia chips eventually failed to meet the company's evolving technical specifications.
- Oracle resold the capacity at a 20% premium to other customers under long-term contracts; most GPUs covered by these renewals were at least four years old, the company noted.
- In afternoon trading, shares of the cloud provider fell nearly 3% while Microsoft stock remained little changed, as Oracle maintains its existing hardware continues to attract 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 firms including Nscale and Nebius.
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13 Articles
13 Articles
Microsoft is winding down Oracle deal to rent AI cloud capacity, Bloomberg News reports
Microsoft is winding down an arrangement to rent AI computing from Oracle as part of a larger reassessment of billions of dollars in cloud partnerships, Bloomberg News reported on Friday, citing people familiar with the matter.
·London, United Kingdom
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Microsoft is gradually phasing out its artificial intelligence capabilities leased from Oracle. The decision comes as the software giant reviews its multi-billion dollar cloud partnerships and finds that the current hardware no longer meets the company's technical requirements, Bloomberg reported.
·Budapest, Hungary
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Coverage Details
Total News Sources13
Leaning Left0Leaning Right2Center5Last UpdatedBias Distribution71% Center
Bias Distribution
- 71% of the sources are Center
71% Center
C 71%
R 29%
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