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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)

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In short

The termination of the capacity agreement concludes an infrastructure arrangement that the two tech companies established in 2023. Microsoft chose not to renew the deal specifically due to dissatisfaction with the underlying hardware, which utilized older Nvidia graphics processing units. Following this non-renewal, Microsoft began the active process of turning off the leased computing power provided by the vendor.

Key points

  • Microsoft elected not to renew its 2023 computing infrastructure agreement with Oracle.: Microsoft elected not to renew its 2023 computing infrastructure agreement with Oracle.
  • The decision to end the leasing contract was driven entirely by outdated hardware compone…: The decision to end the leasing contract was driven entirely by outdated hardware components.
  • Rented server systems powered by older Nvidia chips are actively being switched off.: Rented server systems powered by older Nvidia chips are actively being switched off.

Sources checked by our analysis pipeline: 1

Mackenzie Hawkins / Bloomberg: |

Maggie Eastland / Bloomberg: |

Kevin Breuninger / CNBC: |

Lawrence Abrams / BleepingComputer: |

Thinking Machines Lab: |

Wall Street Journal: |

Rebecca Cohen / NBC News: |

Kana Inagaki / Financial Times: |

Natalia Kniazhevich / Bloomberg: |

Jada Nagumo / Nikkei Asia: |

Pranshu Verma / Washington Post: |

Alexander Martin / The Record: |

Bloomberg: |

Reuters: |

Emmy Martin / New York Times: |

Qianer Liu / The Information: |

Matthias Bastian / The Decoder: |

Brody Ford / Bloomberg: |

Reuters: |

Financial Times: |

New York Times: |

Eric Geller / Cybersecurity Dive: |

Davey Alba / Bloomberg: |

Sidhartha Shukla / Bloomberg: |

Emma Roth / The Verge: |

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Todd Spangler / Variety: |

Joel Khalili / Wired: |

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