Microsoft winds down AI compute lease with Oracle

Nov 6, 2026
Microsoft is ending a 2023 agreement to rent Oracle AI computing capacity after older Nvidia chips no longer met its requirements.
Microsoft winds down AI compute lease with Oracle

Microsoft is phasing out a 2023 agreement to rent AI computing capacity from Oracle after declining to renew the contract, Bloomberg reported, according to Globe TV. Microsoft has gradually stopped using the capacity because the servers rely on older Nvidia chips that no longer meet its requirements.

The 2023 arrangement gave Microsoft Oracle Cloud Infrastructure servers to run its AI-driven Bing search; its value was not disclosed, TechFlow reported. The move is part of a wider review of more than $80 billion in deals with outside cloud providers including CoreWeave, Nscale and Nebius.

Oracle said demand for its AI infrastructure remains strong, including capacity using earlier Nvidia chips. Oracle shares fell more than 4% at one point, to their lowest level since March 2024, TradingKey reported.

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