Microsoft Ends Oracle AI Computing Rental Deal Amid Cloud Strategy Shift
Microsoft Ends Oracle AI Computing Rental Deal Amid Cloud Strategy Shift
Microsoft has begun terminating its agreement to rent artificial intelligence computing capacity from Oracle, signaling a shift in its cloud infrastructure strategy. The move comes as the tech giant reassesses billions of dollars in existing cloud partnerships, with Oracle shares dipping nearly 3% following reports of the contract non-renewal.
Microsoft is winding down an arrangement to rent artificial intelligence computing capacity from Oracle as part of a broader reassessment of billions of dollars in cloud partnerships, Bloomberg News reported on Friday, citing people familiar with the matter.
The technology giant has been turning off rented computing capacity from Oracle in recent months after declining to renew the contract. Over time, the computing capacity Microsoft was renting became less valuable as it no longer met the company's evolving needs, the report added.
Oracle shares were down nearly 3% in afternoon trading, while Microsoft stock was little changed. Neither company immediately responded to requests for comment.
S.Leroy--MJ
