Microsoft Winds Down Oracle AI Compute Deal $ORCL $MSFT Microsoft is scaling back rented AI computing capacity from Oracle after choosing not to renew parts of the agreement.
The capacity had become less useful as it relied on older-generation Nvidia chips that no longer matched Microsoft’s specifications, prompting the company to turn off the rented infrastructure over recent months
The move forms part of a broader reassessment of Microsoft’s cloud partnerships and AI infrastructure spending. Oracle maintains that demand for its AI infrastructure remains strong, including for older GPUs, and said in September that some four-year-old GPU contracts were being renewed at a 20% premium to original pricing.| FJ