Oracle troubles aggravate as Microsoft scraps 3-year-old deal; comes as software giant rethinks cloud partnerships; renting computing from Oracle reportedly became less useful as …
Microsoft is phasing out an artificial intelligence (AI) computing partnership with Oracle Corp after choosing not to renew a 2023 agreement, Bloomberg has reported, citing people familiar with the matter. According to the report, Microsoft has steadily deactivated rented server capacity in recent months. The Oracle-hosted machines relied on older generations of Nvidia Corp. chips that no longer align with Microsoft’s current computing requirements. The shift highlights growing industry unease surrounding hardware obsolescence; research firm Gartner Inc. has warned that aggressive capital expenditures on AI infrastructure risk significant write-downs as faster, more efficient chips enter the market.
