Business2 sources
Microsoft Winding Down Oracle Deal to Rent AI Cloud Capacity
Bloomberg Technology · By Brody Ford ·
The Brief
- Microsoft is winding down an arrangement to rent AI computing capacity from Oracle, according to Bloomberg sources.
- Microsoft has been turning off rented Oracle capacity after declining to renew a 2023 deal.
- Sources say the hardware used older Nvidia chips, which was a factor in the decision.
- The move is part of a broader reassessment of billions of dollars in cloud partnerships.
Why it matters
It signals that major cloud customers are reassessing AI capacity contracts based on hardware generation, which may affect how cloud providers price and renew older GPU infrastructure.
Who’s affected
- Oracle Cloud Infrastructure customers
- Microsoft Azure teams relying on third-party AI capacity
- #cloud
- #ai infrastructure
- #oracle
- #microsoft
- #nvidia
- #gpu capacity
Microsoft Corp. is winding down an arrangement to rent AI computing from Oracle Corp., part of a larger reassessment of billions of dollars in cloud partnerships.
Timeline
Original 2023 deal for rented Oracle computing capacity
Bloomberg reports Microsoft is winding down the Oracle AI capacity arrangement
Bloomberg Technology
Microsoft Winding Down Oracle Deal to Rent AI Cloud Capacity
Techmeme
Sources: Microsoft has been turning off rented computing capacity from Oracle after declining to renew a 2023 deal, because the hardware used older Nvidia chips (Brody Ford/Bloomberg)