Microsoft to drop rented computing capacity from Oracle

Microsoft is ending an arrangement to rent AI computing power from its rival Oracle, Bloomberg reported. Oracle shares dipped 4% on Friday on the news. The report fed fresh doubts about how long the AI infrastructure boom can continue to sustain itself. Microsoft has been using less of the rented computing power in recent months and has decided not to renew the deal, Bloomberg reported, citing people familiar with the matter. Neither company has shared how much the deal was worth. According to the reports, the rented capacity no longer met Microsoft’s needs. Oracle’s hardware used older Nvidia (NVDA) chips, making it less suitable for the AI tasks Microsoft is currently interested in running.

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