Microsoft is gradually phasing out its agreement to lease AI computing resources from Oracle, according to Bloomberg sources familiar with the matter. The tech giant has shut down related compute capacity in recent months after declining to renew contracts, citing that Oracle's hardware relies on older-generation Nvidia chips that no longer meet Microsoft's specifications. The move reflects a broader reassessment of Microsoft's multibillion-dollar cloud partnerships. The company had previously spent over $80 billion leasing compute from providers including CoreWeave, Nscale, and Nebius. An Oracle spokesperson countered that market demand for its AI infrastructure, including earlier GPUs, remains strong. Microsoft declined to comment.