Microsoft Stops Renewing Oracle Capacity
The largest renter of outside compute no longer wants to pay for older chips, and the whole sourcing model is under review.
Microsoft is phasing out its AI compute lease with Oracle and will not renew it, Bloomberg reported on 7 November 2026, as part of a broad reassessment of its cloud partnerships. The Oracle hardware uses an older generation of Nvidia chips that no longer match Microsoft’s requirements. Microsoft has committed more than $80 billion to renting capacity from outside cloud providers overall, a figure covering deals with CoreWeave, Nscale and Nebius rather than the Oracle agreement alone. It has also declined to expand an Nscale contract in Texas and exited a $3 billion UK deal.
