Microsoft Lets Oracle AI Compute Contract Expire: Older-Generation Nvidia Chips Trigger Review of $80 Billion Cloud Deals
Microsoft has decided not to renew its 2023 AI compute leasing agreement with Oracle and is phasing out Oracle data-center capacity, as older-generation Nvidia chips no longer match current AI inference needs. The move is part of a broader review of more than $80 billion in external cloud contracts and adds to pressure on Oracle’s already strained finances.