Microsoft pulls back from its Oracle deal for AI cloud capacity
Microsoft is winding down an arrangement to rent AI cloud capacity from Oracle, according to a Bloomberg report carried by Reuters. The move signals a shift in how Microsoft sources compute for its AI workloads, scaling back reliance on a rival cloud provider even as demand for AI infrastructure keeps climbing.
Microsoft is winding down Oracle deal to rent AI cloud capacity.
- tonoto
Ouch, investment in GPU isn't a one off, you also need to invest newer generations (that naturally comes with a bigger price tag) to attract customers long term. How will this business ever become profitable before the bubble bursts?
- neural_thing
This is a nothingburger. Microsoft declining to renew a deal for 2023 A100s that power Bing because they want newer chips in house.
Oracle can re-rent them at spot at a higher price anyway.
Apparently a lot of market participants are too scared to be able to read today.