Foreign media: Microsoft gradually terminates AI computing power leasing agreement with Oracle.

BlockBeats news, November 7 - According to foreign media citing informed sources, Microsoft (MSFT.O) has not renewed its AI computing power leasing contract with Oracle (ORCL.N) and has been gradually shutting down the rented computing resources in recent months. The sources said that the servers provided by Oracle use older-generation NVIDIA (NVDA.O) chips and no longer meet Microsoft's current technical specifications. The two parties reached the agreement in 2023 to provide computing power for the new version of the Bing AI search engine, and the specific contract amount is unknown.

Oracle responded that demand for its AI infrastructure remains strong and that older-generation GPUs still have a market. Microsoft is reassessing external AI computing power partnerships, having previously committed more than $80 billion in computing power leasing spending to emerging cloud service providers such as Coreweave (CRWV.O), Nscale, and Nebius (NBIS.O).

Earlier reports said that Microsoft management has become increasingly dissatisfied with the high costs and project delays of some suppliers, recently strengthened review of data center projects, exited some high-risk projects, and is reconsidering whether to sign new computing power cooperation agreements. At the same time, Oracle's cloud business is expanding rapidly, but high capital expenditures have turned free cash flow negative, intensifying investor concerns about the returns on its AI infrastructure investment, and its stock price has fallen by more than half from this year's high.

Affected by the news, Oracle's stock price quickly turned lower during intraday trading, with losses once widening to 4.6%, and closed up 0.74%.