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Microsoft reportedly winds down a 2023 deal to rent AI capacity from Oracle because the servers use older Nvidia chips, per Bloomberg
Bloomberg says Microsoft is not renewing a 2023 Oracle AI-capacity rental on older Nvidia chips. Microsoft declined comment; the size is unknown.
This is a non-renewal and wind-down reported by Bloomberg, not an abrupt cut, and it rests on unnamed sources. On November 6, 2026, Bloomberg reported that Microsoft has been switching off, in recent months, AI computing capacity it rented from Oracle under a 2023 deal, after deciding not to renew. The sources say the servers use an older generation of Nvidia chips that no longer meet Microsoft's needs. Microsoft declined to comment, and the size of the contract is not known.
The essentials
- What is reported: Microsoft is winding down a 2023 rental of Oracle AI capacity that supported Bing's AI features, after choosing not to renew.
- Why, per the sources: the Oracle hardware uses older-generation Nvidia chips that no longer match Microsoft's specifications. Microsoft has not confirmed this reason.
- Oracle's response: a spokesperson said demand for its AI infrastructure remains strong, including for earlier-generation GPUs. Oracle shares fell about 3% to 4% on the news.
- The wider picture: Bloomberg also says Microsoft is reassessing more than $80 billion in other outside cloud contracts, with providers such as CoreWeave, Nscale and Nebius.
Is this the same as the June report?
No. In June, Business Insider reported that separate talks for Microsoft to lease additional Oracle capacity collapsed, reportedly over a US government security certification. Oracle called that account inaccurate. The November report concerns the wind-down of an existing 2023 arrangement.
What does Oracle's side add?
Oracle said in September that it was renewing contracts for four-year-old GPUs at a 20% premium to their original prices, according to Investing.com. That suggests the freed-up capacity may find other buyers, but Oracle has not said what happens to this block.
What is not established
- The size of the contract and the number or model of chips: Bloomberg could not determine them.
- Microsoft's actual reason: the explanation comes from unnamed people, and Microsoft declined to comment.
- Whether other Oracle or neocloud contracts will also end: Microsoft is reportedly reassessing them, with no decisions reported.
- Whether Oracle will resell the capacity, and at what price: not stated for this block.
Summary table
| Point | What is stated as of November 7, 2026 | Source |
|---|---|---|
| Report | Bloomberg, November 6, 2026, anonymous sources | The Next Web |
| Original deal | 2023, AI computing for Bing | Investing.com |
| Reason given | Older-generation Nvidia chips no longer meet specs | Investing.com |
| Microsoft response | Declined to comment | The Next Web |
| Oracle response | Demand strong, including for older GPUs | Investing.com |
FAQ
Did Microsoft cut Oracle suddenly?
Reports describe a non-renewal and a gradual switch-off over recent months, not an abrupt termination.
Has Microsoft confirmed the reason?
No. It declined to comment; the older-chip reason comes from people familiar with the matter.
Is it the same as the June collapsed talks?
No. Those were separate talks about leasing more capacity; Oracle disputed that report.
Method and limits
Sources checked on November 7, 2026. We did not read the Bloomberg report itself; we relied on The Next Web, Reuters via Investing.com and other relays. Core claims rest on unnamed sources. This is not investment advice.
Sources
- The Next Web: Microsoft is winding down its deal to rent AI computing from Oracle (verified 2026-11-07)
- Investing.com (Reuters): Microsoft is winding down Oracle deal to rent AI cloud capacity, Bloomberg News reports (verified 2026-11-07)
- Investing.com: Oracle falls 4% as Microsoft reportedly winds down AI cloud capacity deal (verified 2026-11-07)
- MarketScale: Microsoft is winding down a 2023 deal to rent AI cloud capacity from Oracle, Bloomberg reports (verified 2026-11-07)
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