By Shubhendu Vimal
Publication Date: 2026-11-09 13:33:00
Microsoft is reportedly scaling back an arrangement to lease AI computing capacity from Oracle following a choice not to extend the agreement, Bloomberg reported, citing unnamed sources.
Originally announced in 2023, the partnership provided Microsoft with access to Oracle servers to operate an AI-supported edition of its Bing search engine.
Over recent months, Microsoft has started decommissioning the leased infrastructure.
The hardware had diminished in usefulness to Microsoft over time as it ceased to satisfy the organisation’s technical specifications, with the Oracle systems utilising previous-generation Nvidia processors.
The overall monetary value of the deal was not revealed.
An Oracle representative cited in the report stated that demand for the vendor’s AI infrastructure remains strong, including for earlier-generation graphics processing units (GPUs).
In September, Oracle reported that it was extending…
