Microsoft is quietly shutting down AI computing it rented from Oracle

Microsoft is shutting down AI computing power it rented from Oracle. Bloomberg, citing sources, reports that Microsoft chose not to renew a deal signed in 2023 and has been turning off the rented capacity. The reason: the hardware uses older Nvidia chips.

What changed

AI tools need huge amounts of computing power, and the chips inside the machines matter a lot. Nvidia is the company that makes the most sought-after ones. Microsoft rented machines from Oracle, another big tech company, to get more power. Now it is winding that arrangement down instead of extending it.

Why older chips are a problem

Chips that were top of the line a few years ago are less useful for newer AI work. Renting them can mean paying for power that does less than newer gear. Bloomberg's sources say the move is part of a wider review of Microsoft's very large spending on AI.

Who it affects

Most people will not notice this directly. But the price of AI tools often tracks what it costs to run them. If chips go out of date quickly, companies must keep buying new ones, and that cost can eventually show up in what customers pay.

What is not known yet

• How much computing capacity is being turned off.
• What the original deal was worth.
• Whether any Microsoft products or customers will see changes.
• What Microsoft or Oracle say about the report.

The full Bloomberg article was not available, so these details remain unclear. The report rests on unnamed sources, and neither company's response is included in the material.