Microsoft switches off Oracle-rented AI servers as old Nvidia GPUs lose economic edge
rohanpaul_ai · x · 2026-11-07
Per Bloomberg, Microsoft is switching off AI servers rented from Oracle after declining to renew a 2023 contract, as Oracle's older-generation Nvidia chips no longer match its specs.
With per-GPU-hour billing, Blackwell delivers several times the inference output of an H100 at similar power; big MoE models need the memory and interconnect of Blackwell racks (72 linked GPUs, 192-288GB each) rather than H100's 80GB and 8-GPU links. Oracle says demand remains strong and renewed 4-year-old GPUs at a 20% premium in September.
Related event: Microsoft Winds Down Oracle AI Compute Lease, Oracle Shares Fall(7 posts)→
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