Microsoft won't renew Oracle A100 rental for Bing amid $80B compute portfolio shake-up
zephyr_z9 · x · 2026-11-07
Per Bloomberg, Microsoft has committed $80B+ to renting third-party AI compute but is cutting back in several places:
- Oracle: not renewing the 2023 Bing compute deal — older NVIDIA A100s reportedly no longer meet its specs; MSFT walked away rather than pay a premium.
- Nscale UK: canceled a $3B Loughton agreement after grid delays pushed power availability into the 2030s.
- Nscale Texas: declined an expansion worth tens of billions; existing Texas contract stays.
- Nscale West Virginia: stepped away from an LOI.
Poster zephyrz9 argues the market overreacted: this is rational triage of outdated GPUs and delayed projects, not a signal of shrinking AI demand.
Related event: Microsoft Winds Down Oracle AI Compute Lease, Oracle Shares Fall(7 posts)→
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