From Startup Fortune · · 1m
Microsoft Ends Oracle AI Cloud Deal
Microsoft stops $3 billion Oracle cloud rental after Nvidia GPUs no longer meet specs.
In brief
Microsoft stops $3 billion Oracle cloud rental after Nvidia GPUs no longer meet specs. Microsoft ended a $3 billion Oracle cloud deal because Nvidia GPUs in the servers no longer meet its computing requirements. Originally reported by Startup Fortune.
Microsoft Oracle Cloud Deal
Microsoft declined to renew a $3 billion cloud rental agreement with Oracle for AI computing capacity.
Nvidia GPU Issue
The Nvidia GPUs in Oracle's servers no longer meet Microsoft's computing specifications.
FedRAMP Certification
Microsoft walked away from the deal after Oracle's public cloud lacked FedRAMP certification.
Oracle Shares Impact
Oracle shares fell about 4% following the news of the deal wind-down.
Semiconductor Selloff
Semiconductor stocks dropped 11.8% in a week due to concerns about AI infrastructure spending returns.
Microsoft's Strategy
Microsoft has committed over $80 billion to computing capacity from outside cloud providers.
Oracle Backlog
Oracle's backlog sits at $664 billion with half tied to OpenAI's compute commitments.
The one thing
Microsoft ended a $3 billion Oracle cloud deal because Nvidia GPUs in the servers no longer meet its computing requirements.
