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● LIVE Updated 1h ago · 11 sources tracked

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

Microsoft is discontinuing its AI computing rental agreement with Oracle, a deal made in 2023 to support its Bing search engine. This move is part of Microsoft's broader reassessment of cloud partnerships. Oracle's stock has faced pressure, with shares down nearly 3%, and investors are watching if it can approach $100. The partnership provided Microsoft access to Oracle servers for AI operations.

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  • ✓ Microsoft is winding down its deal to rent AI cloud capacity from Oracle.
  • ✓ The deal was originally announced in 2023 to support Microsoft's Bing search engine.
  • ✓ Oracle's stock has faced pressure, with shares down nearly 3%.
🛡️ Source Corroboration: 11 independent reporting domains (90% confidence) ⏱ Read time: ~2 min

What changed

Multiple sources confirmed Microsoft's decision to wind down the Oracle deal, with Bloomberg's report being widely cited.

Live updates

  1. Microsoft winds down Oracle deal for AI cloud capacity

    Microsoft is discontinuing its AI computing rental agreement with Oracle, a deal made in 2023 to support its Bing search engine. This move is part of Microsoft's broader reassessment of cloud partnerships. Oracle's stock has faced pressure, with shares down nearly 3%, and investors are watching if it can approach $100. The partnership provided Microsoft access to Oracle servers for AI operations.

    Why it matters

    The decision affects Oracle's backlog, which heavily relies on OpenAI, accounting for about half of it, according to S&P. Microsoft's move follows its rethink of over $80 billion in cloud contracts. The exit has implications for Oracle's balance sheet and its ability to secure future deals.

    What is confirmed

    • Microsoft is winding down its deal to rent AI cloud capacity from Oracle.
    • The deal was originally announced in 2023 to support Microsoft's Bing search engine.
    • Oracle's stock has faced pressure, with shares down nearly 3%.

    Still unconfirmed

    • The deal's discontinuation is due to outdated Nvidia GPUs.

    What to watch next

    • Oracle's stock performance
    • Microsoft's future cloud partnerships
    • Impact on Oracle's backlog and balance sheet
    Sources used for this update (12)
    1. Yahoo Finance — A Retiree Who Bought 1,000 Oracle Shares at $39 Just Watched Microsoft Walk Away
    2. Bloomberg.com — Microsoft Is Winding Down Oracle Deal to Rent AI Cloud Capacity
    3. Reuters — Microsoft is winding down Oracle deal to rent AI cloud capacity, Bloomberg News reports
    4. Barron's — Microsoft Won’t Renew Deal for Renting AI Cloud Capacity From Oracle: Report
    5. Seeking Alpha — Microsoft winds down rented AI computing capacity from Oracle: report (MSFT:NASDAQ)
    6. telecom.economictimes.indiatimes.com — Microsoft is winding down Oracle deal to rent AI cloud capacity: Report
    7. thedigitalbriefnews.com — Oracle Stock Nears $100 After Microsoft AI Cloud Deal Exit
    8. www.livemint.com — What the global AI rout means for India
    9. finance.yahoo.com — Microsoft reportedly winds down Oracle AI infrastructure contract
    10. finance.yahoo.com — The Stock Market Is “Petrified of Oracle’s Balance Sheet” as Microsoft Walks Away
    11. thenextweb.com — Microsoft is winding down its deal to rent AI computing from ...
    12. startupfortune.com — Microsoft Winds Down Oracle Deal To Rent AI Cloud Capacity
    confidence 90%
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