Microsoft Reported to Gradually Terminate AI Compute Leasing Agreement with Oracle

On November 7, citing Jin10 Data, foreign media referenced sources who stated that Microsoft has opted not to renew its AI computing lease agreement with Oracle and has been gradually winding down the leased computing resources over recent months. Sources indicated that Oracle’s provided servers run on older-generation Nvidia chips, which no longer align with Microsoft's current technical specifications.

The two parties struck the deal in 2023 to supply computing power for the upgraded AI search engine Bing, though the exact contract figure remains unknown. Oracle replied that its demand for AI infrastructure remains robust and that older-generation GPUs still have market applications. Microsoft is now reevaluating external AI computing partnerships, having previously committed more than $80 billion in compute leasing expenditures to emerging cloud vendors including CoreWeave, Nscale, and Nebius.

In response to the news, Oracle's stock price rapidly reversed course, seeing intraday losses widen to 4.6% at one point, now down approximately 3% after briefly rising around 3.5%; the stock has dropped by more than half from its peak earlier this year.