Microsoft Ends Oracle AI Cloud Deal, Citing Older Nvidia Chip Performance
Microsoft's decision to wind down its AI computing capacity rental from Oracle signals a shift towards newer, more powerful AI infrastructure.
The story
Microsoft is discontinuing its arrangement to rent AI computing capacity from Oracle, according to a Bloomberg report from November 6, 2026. The company chose not to renew the contract and has been transitioning off the rented servers in recent months.
The primary reason cited for the move is that the older Nvidia chips used in Oracle's infrastructure no longer meet Microsoft's evolving requirements for AI workloads. This deal, originally established in 2023, aimed to boost computing power for an AI-assisted version of Bing.
While Microsoft declined to comment on the specifics, Oracle stated that demand for its AI cloud infrastructure remains strong, including for earlier-generation GPUs. The decision highlights the rapid pace of innovation in AI hardware and the continuous need for tech giants to upgrade their underlying infrastructure to support advanced AI development.
Who moved
Meta
What Changed: Indefinitely paused controversial web scraping policy changes that would have allowed collecting material from business accounts, including journalistic organizations.
Why It Matters: The pause follows stakeholder consultations and indicates a response to concerns over data collection practices from websites associated with Meta business accounts.
What Changed: Began offering voluntary exit packages to employees, contributing to over 200,000 tech job cuts across the US industry in 2026.
Why It Matters: This move reflects ongoing workforce restructuring within major tech companies as artificial intelligence changes operational needs and spending priorities.
Microsoft
What Changed: Faced protests at its Amsterdam data center construction site by the 'Stop Dirty Data Centres' coalition.
Why It Matters: Activists demand a moratorium on large AI data center projects in Europe due to mounting environmental and social concerns.
Products & launches
Windows 11 Insider Preview Builds
Company: Microsoft
What: Released new builds to the Beta and Experimental channels, including updates to Windows Hello sign-in behavior for more consistent and clearer guidance.
Platforms & policy
| Platform | Development |
|---|---|
| FTC | Unsealed a complaint against Amazon regarding alleged deceptive ad pricing. |
Money & markets
Amazon, Alphabet, Microsoft, Meta. Reported a combined third-quarter operating cash flow that failed to cover capital expenditures, resulting in a funding gap of approximately $26.4 billion.
Amazon, Alphabet, Microsoft, Meta, Oracle. Collectively issued over $370.7 billion in investment-grade bonds in 2026 through November 4, close to one-fifth of all US investment-grade issuance, tied to funding AI ambitions.
Amazon. Recorded cash capital expenditures of $172.2 billion in the first three quarters of 2026, primarily for AWS data centers and technology infrastructure.
What we'll be watching
- Nvidia's next quarterly earnings report on November 17 will test market growth prospects.
- The FTC v. Amazon trial is scheduled for late 2026, targeting alleged monopoly in online superstores and marketplace services.
Reporting + analyst voices: grounded via Google Search at publish time.