Business1 min read

Microsoft is winding down Oracle deal to rent AI cloud capacity, Bloomberg News reports

By · Published by Everything Blog

In short

The decision to end the arrangement involves systematically shutting down rented capacity over recent months rather than renewing the existing contract. That rented infrastructure diminished in value as Microsoft determined it no longer suited the company's shifting technological demands. Following the publication of the report, Oracle shares declined nearly 3 percent in afternoon trading, whereas Microsoft shares remained stable. Neither company offered an immediate response to requests seeking comment on the reported shift.

Key points

  • Microsoft decided to exit the arrangement because the rented infrastructure no longer ali…: Microsoft decided to exit the arrangement because the rented infrastructure no longer aligned with its operational needs.
  • The computing capacity gradually lost its strategic value to Microsoft as requirements co…: The computing capacity gradually lost its strategic value to Microsoft as requirements continued to evolve.
  • Neither Microsoft nor Oracle provided immediate comments to confirm or address the report…: Neither Microsoft nor Oracle provided immediate comments to confirm or address the reported partnership changes.

Sources checked by our analysis pipeline: 1

Nov 6 : 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.

Oracle shares were down nearly 3 per cent in afternoon trading, while Microsoft was little changed.

Microsoft has been turning off rented computing capacity from Oracle in recent months after declining to renew the contract, according to the report.

Over time, the computing capacity Microsoft was renting became less valuable as it no longer met the company's evolving needs, the report added.

Microsoft and Oracle did not immediately respond to Reuters’ requests for comment.

Business