In a report published November 6, 2026, Bloomberg said Microsoft had decided not to renew its 2023 arrangement to rent AI-computing capacity from Oracle and had been switching off that capacity in recent months. The servers were intended to support AI-assisted Bing. Bloomberg’s unnamed sources attributed the decision to older-generation Nvidia chips in Oracle’s hardware that no longer met Microsoft’s specifications.
What the Oracle arrangement supported
The multi-year arrangement gave Microsoft access to Oracle servers for AI-assisted Bing. Bloomberg reported that Microsoft had declined to renew it and had been switching off the rented capacity in recent months.
Why Microsoft reportedly declined to renew
Bloomberg attributed the decision to a mismatch between Microsoft’s specifications and the older-generation Nvidia chips in Oracle’s hardware. The reported explanation concerns the hardware used for this arrangement; it does not establish a broader change to Microsoft’s use of outside computing capacity.
The Oracle decision is a supplier-specific change: Bloomberg tied it to Microsoft’s requirements for this hardware while reporting that Microsoft had separate capacity commitments with other cloud providers.
Oracle’s response and cloud-business revenue
An Oracle spokesperson told Bloomberg that demand for Oracle’s AI infrastructure remained strong, including for earlier-generation GPUs. Bloomberg also reported that Oracle’s cloud business generated $18 billion in revenue in the year ended May 2026. That figure covers Oracle’s cloud business overall.
Microsoft’s other cloud-capacity commitments
Bloomberg reported that Microsoft had committed more than $80 billion to rent capacity from other cloud companies. That aggregate covers other providers, not the Oracle arrangement. The reported decision therefore concerns one supplier relationship within Microsoft’s broader set of external-capacity commitments.
