Microsoft is winding down Oracle deal to rent AI cloud capacity, Bloomberg News reports
- 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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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.
Microsoft is winding down its deal to rent AI computing from Oracle
Microsoft is winding down a 2023 deal to rent AI computing from Oracle after declining to renew it, Bloomberg reports. The servers ran older Nvidia chips. Microsoft is reassessing more than $80B in contracts with outside cloud providers. Microsoft is winding down a deal to rent AI computing power from Oracle, Bloomberg reported on Friday, […] This story continues at The Next Web
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.
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