Microsoft is winding down a deal to rent AI computing capacity from Oracle, a partnership the companies announced in 2023. The move is part of Microsoft’s broader reassessment of its multibillion-dollar cloud partnerships.
The rented capacity reportedly became less useful as its older-generation Nvidia chips no longer met Microsoft’s evolving requirements for AI workloads. Microsoft has been turning off the capacity in recent months after declining to renew the contract.
Oracle shares fell notably after the news.