Microsoft Winds Down Oracle AI Deal After Earlier Commitments Exceed $80 Billion

Microsoft is winding down rented AI-computing capacity from Oracle following earlier commitments to other providers exceeding $80 billion.

Microsoft stopped renewing the rental agreement and has been gradually shutting down the capacity in recent months. Oracle’s servers use an older generation of Nvidia chips that no longer meets Microsoft’s current technical requirements.

Microsoft and Oracle reached the agreement in 2023 to provide computing power for a new version of Bing’s AI search engine. The contract’s value was not disclosed.

Microsoft had previously committed more than $80 billion in compute-rental spending to Coreweave, Nscale and Nebius. Oracle responded that demand for its AI infrastructure remains strong and that older-generation GPUs still have a market.