Microsoft is switching off AI computing it rented from Oracle after not renewing the deal, Bloomberg reports, as it rethinks $80B+ in cloud contracts.
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Itβs risky business at Oracle.
For your βis that a bubble popping?β Bingo cards: Bloomberg reports that Microsoft is reconsidering deals to rent server capacity from βneocloudsβ to power its AI efforts, and has been turning off rented capacity from Oracle since declining to renew a 2023 deal. Sources said the computing power Oracle offered used older Nvidia chips, and had become less useful to Microsoft. [Link: Please stop asking me when the AI bubble will pop | https://www.theverge.com/ai-artificial-intelligence/1025826/ai-bubble-pimco-apollo-bonds | The Verge]
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[Link: Bing Chat is so GPU-hungry, Microsoft will rent Oracle's | https://www.theregister.com/2023/11/07/bing_gpu_oracle/ | The Register] Even Microsoft needs some extra GPUs for its AI tools, and it’s turning to Oracle to get them as part of a multi-year deal, as reported by The Register.
Oracle has cancelled a $7B deal to lease about 100,000 AI chips to Tencent after pressure from the Trump administration, the FT reports.
Oracle is selling $10B of bonds in six parts and $10B of new shares, matching the $20B funding cap it set at last weekβs investor day.
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These are some of the stocks posting the largest moves midday.
Alphabet, Meta, Microsoft, Amazon and Oracle have committed over $3T to data centres, leases and energy, Bloomberg reports, led by Alphabet's $1T-plus.
Oracle says free cash flow will hit $30B in fiscal 2029 and caps new fundraising at $20B, easing fears over its AI data centre spending. Shares rose 14%.
βDifferent AI workloads have different compute needs,β Oracle says, as Oracle AI World brings Google TPUs, Nvidia Vera Rubin and OpenAI tools.
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Oracle issued a revenue forecast for fiscal year 2030 of $225 billion, and said it will limit additional fundraising over that stretch to $20 billion.
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Oracle's Media Fabric pairs its own AI video models with a live-streaming network, pitching big-studio tools to creators of all sizes within 12 months.
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Oracle is integrating OpenAIβs ChatGPT and Codex into its applications and plans to add Google TPUs and OpenAIβs JalapeΓ±o chip to OCI.
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Credit markets will be closely watching updates from Oracle and other hyperscalers later this week. What to expect.
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Oracle will run Cerebras' wafer-scale AI computers in its data centres from 2027, adding a big cloud customer for the Nvidia rival after OpenAI and Amazon.
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Oracle will spend $1B over four years on partners that build, sell and install its software, covering training, test setups, cloud migration and sales.
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AstraZeneca and Oracle will use AI and real-world health data to find trial patients sooner, starting with a hypertension programme in Abu Dhabi.