Microsoft Winds Down Deal to Rent AI Cloud Capacity From Oracle

Microsoft is winding down its agreement to rent artificial intelligence cloud computing capacity from Oracle after opting not to renew the contract. The decision is part of Microsoft's broader reassessment of billions of dollars in third-party cloud infrastructure partnerships. The rented capacity, originally established in 2023 to support an AI-driven version of Bing, relied on older-generation Nvidia GPUs that no longer meet Microsoft's evolving technical specifications. Oracle defended its position, stating demand remains robust and noting it renewed four-year-old GPU contracts at a 20% premium in September. Oracle shares dropped up to 7% intraday.