# Microsoft is winding down Oracle deal to rent AI cloud capacity, Bloomberg News reports

- URL: https://talkfuse.com/story/microsoft-is-winding-down-oracle-deal-to-rent-ai-cloud-capacity-bloomberg-news-reports/
- Published: 2026-11-06T17:48:32+00:00
- Updated: 2026-11-06T18:41:51+00:00
- Original publisher: CNA (publisher lean: Centre)
- Original article: https://www.channelnewsasia.com/business/microsoft-winding-down-oracle-deal-rent-ai-cloud-capacity-bloomberg-news-reports-6532071
- Topics: AI, Technology, World

## Key points

- Microsoft is ending its Oracle AI computing rental arrangement.
- Older Nvidia hardware reportedly no longer met Microsoft’s needs.
- Microsoft’s requested network changes also delayed IREN’s capacity plans.

## Summary

Microsoft is winding down its arrangement to rent AI computing capacity from Oracle, according to a Bloomberg report citing people familiar with the matter. The move forms part of a broader review of Microsoft’s cloud partnerships and suggests it is adjusting how it secures computing for its substantial AI investments.

Microsoft reportedly declined to renew the contract and has been switching off rented capacity in recent months because the older-generation Nvidia hardware no longer met its changing needs. Oracle shares fell nearly 3 per cent after the report, while Microsoft’s share price was little changed; neither company immediately commented. Separately, infrastructure provider IREN said requested network design changes from Microsoft delayed deliveries, pushing back its target to bring more than $4 billion in annualised revenue capacity online from year-end to January, with a possible further delay to late February.

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