On November 7, foreign media reported, citing people familiar with the matter, that Microsoft has stopped renewing its AI compute leasing contract with Oracle and has been gradually decommissioning the leased computing resources over the past few months. According to these sources, the servers provided by Oracle use an older generation of Nvidia chips and no longer meet Microsoft's current technical specifications. The two parties reached an agreement in 2023 to supply computing power for the new version of the AI search engine Bing, though the contract value was not disclosed. Oracle responded that demand for its AI infrastructure remains strong and that older-generation GPUs still have a market. Microsoft is reassessing its external AI compute partnerships, having previously committed more than $80 billion in compute leasing spending to emerging cloud service providers such as CoreWeave, Nscale, and Nebius. Earlier reports indicated that Microsoft management has grown increasingly dissatisfied with the high costs and project delays of some suppliers, has recently tightened reviews of data center projects, exited certain high-risk projects, and is reconsidering whether to sign new compute cooperation agreements. Meanwhile, Oracle's cloud business is expanding rapidly, but heavy capital expenditures have pushed free cash flow into negative territory, intensifying investors' concerns about the returns on its AI infrastructure investment; its stock price has fallen by more than half from this year's high. Following the news, Oracle's stock price quickly turned negative, with intraday losses once widening to 4.6%. It is currently down about 3%, having previously risen about 3.5%.