Cloud: Microsoft is ending its AI contract with Oracle, according to a report

Bangalore. According to a media report, the US software company Microsoft is letting an agreement to rent computing power for artificial intelligence (AI) from Oracle expire. This is part of a broader review of cloud partnerships worth billions, the Bloomberg news agency reported on Friday, citing insiders.

The software company did not extend the contract and gradually switched off capacity over the past few months. The Oracle hardware with chips from an older generation from Nvidia no longer met Microsoft's changing requirements.

An Oracle spokesman told Reuters that demand for the company's AI infrastructure remains strong, including for older generation graphics processors.

Microsoft could not immediately be reached for comment. The report is another sign that the software company is rethinking how it sources computing power to get more out of its massive AI investments. AI cloud company Iren said on Thursday it had postponed some infrastructure deliveries after Microsoft demanded changes to its network design.