Reported: Microsoft Winding Down an Oracle AI Rental

Reported: Microsoft is winding down a deal to rent AI computing capacity from Oracle, Bloomberg News reported on 6 November 2026, citing people familiar with the matter. According to the report, Microsoft declined to renew the contract and has been turning off the rented capacity in recent months. The capacity, which ran on an older generation of Nvidia chips, no longer met Microsoft's evolving needs. CNBC separately reported, citing two people, that Microsoft opted not to renew a deal with Oracle as it moves to use fewer neocloud partners and prioritize its own data centers. Microsoft is still evaluating which partners it will stop using. The arrangement traces to a multi-year agreement Oracle announced in 2023 to power AI-assisted Bing on Oracle Cloud Infrastructure (OCI). Financial terms were not disclosed. Neither company has confirmed the Oracle-specific wind-down on the record. An Oracle spokesperson told Reuters: "Demand for OCI's AI infrastructure remains strong, including for earlier-generation GPUs." A Microsoft spokesperson told CNBC its strategy is "built on flexibility and choice" and that "We regularly review these investments against customer demand." This reflects reporting, not a confirmed end to the companies' broader relationship.