{"id":"1793989168825-money-segment","slug":"oracle-sinks-as-microsoft-exits-ai-cloud-deal","title":"Oracle sinks as Microsoft exits AI cloud deal","summary":"On Nov. 6, 2026, Bloomberg reported that Microsoft is winding down a deal to rent AI computing capacity from Oracle, later confirmed as roughly a 4-5% hit to Oracle shares. The agreement, announced in 2023, let Microsoft use Oracle Cloud Infrastructure for AI workloads such as the AI-assisted Bing search engine. Microsoft reportedly stopped using capacity in recent months because the rented hardware relied on older-generation Nvidia chips that no longer met Microsoft's specifications.\n\nThe news added to already heavy AI-infrastructure selling pressure. The previous session saw the Nasdaq Composite plunge about 5.5% and the Philadelphia Semiconductor Index tumble 12%, its worst day since March 2020, as investors question whether AI capital spending is sustainable. Oracle says demand for its AI infrastructure remains strong, including older GPUs; in September it said older GPU contracts had renewed at 20% premium.\n\nMicrosoft is winding down its arrangement to rent AI cloud capacity from Oracle, and Oracle shares fell about 4-5% on the report; the stock is trading near $110, down roughly 68% from its record high. This is political messaging about future Democratic accountability; no checkable factual claim.\n\nBloomberg reports Microsoft is winding down the Oracle AI cloud-capacity deal as part of a broader reassessment of cloud partnerships.\n\nOracle shares did fall about 4% after the Microsoft deal report; some updates had the decline around 5% intraday. This is speculative geopolitical/market commentary, not a checkable factual claim. Market preview/analysis about upcoming events; not a specific factual claim to verify.\n\nCNBC reports CoreWeave bond yields have topped 16%, reflecting stress in AI debt markets.\n\nCNBC reports the Nasdaq Composite has dropped into correction territory after the tech selloff.","publishedAt":"2026-11-06T18:19:28.825Z","channel":{"id":"money","name":"Oncast Money","language":"en"},"show":"Money Lunch","verification":{"status":"verified","leadVerdict":"TRUE","notes":"TRUE: Microsoft is winding down its arrangement to rent AI cloud capacity from Oracle, and Oracle shares fell about 4-5% on the report; the stock is trading near $110, down roughly 68% from its record high. This is political messaging about future Democratic accountability; no checkable factual claim.\nSource: [investing.com](https://www.investing.com/news/stock-market-news/oracle-falls-4-as-microsoft-reportedly-winds-down-ai-cloud-capacity-deal-5008936) NAMES: $ORCL  (https://x.com/KobeissiLetter/status/2118761153866482032)\n\nTRUE: Bloomberg reports Microsoft is winding down the Oracle AI cloud-capacity deal as part of a broader reassessment of cloud partnerships.\nSource: [investing.com](https://www.investing.com/news/stock-market-news/oracle-falls-4-as-microsoft-reportedly-winds-down-ai-cloud-capacity-deal-5008936), [tipranks.co (https://x.com/DeItaone/status/2118759939720237133)\n\nTRUE: Oracle shares did fall about 4% after the Microsoft deal report; some updates had the decline around 5% intraday. This is speculative geopolitical/market commentary, not a checkable factual claim. Market preview/analysis about upcoming events; not a specific factual claim to verify.\nSource: [tipranks.com](https://www.tipranks.com/news/the-fly/oracle-falls-after-bloomberg-says-microsoft-winding-down-ai-capacity-deal-thefly-news), [investing.com](htt (https://x.com/DeItaone/status/2118760159162053104)\n\nTRUE: CNBC reports CoreWeave bond yields have topped 16%, reflecting stress in AI debt markets.\nSource: [cnbc.com](https://www.cnbc.com/2026/11/06/coreweave-bond-yield-tops-16percent-as-ai-credit-stress-rises.html) NAMES: CoreWeave = AI cloud/compute provider. (https://www.cnbc.com/2026/11/06/coreweave-bond-yield-tops-16percent-as-ai-credit-stress-rises.html)\n\nTRUE: CNBC reports the Nasdaq Composite has dropped into correction territory after the tech selloff.\nSource: [cnbc.com](https://www.cnbc.com/2026/11/05/nasdaq-drops-into-correction-territory-heres-what-typically-happens-next.html) NAMES: Nasdaq = Nasdaq Composite Index (https://www.cnbc.com/2026/11/05/nasdaq-drops-into-correction-territory-heres-what-typically-happens-next.html)","claims":[{"verdict":"TRUE","summary":"Microsoft is winding down its arrangement to rent AI cloud capacity from Oracle, and Oracle shares fell about 4-5% on the report; the stock is trading near $110, down roughly 68% from its record high. This is political messaging about future Democratic accountability; no checkable factual claim.","sourceName":"[investing.com](https://www.investing.com/news/stock-market-news/oracle-falls-4-as-microsoft-reportedly-winds-down-ai-cloud-capacity-deal-5008936) NAMES: $ORCL ","sourceUrl":"https://x.com/KobeissiLetter/status/2118761153866482032","claim":"BREAKING: Oracle stock, $ORCL, falls -5% after Microsoft ends its deal to rent AI cloud capacity from the company. Oracle is now down -68% from its record high. https://t.co/SshVPMuGH5","author":"The Kobeissi Letter (@KobeissiLetter)"},{"verdict":"TRUE","summary":"Bloomberg reports Microsoft is winding down the Oracle AI cloud-capacity deal as part of a broader reassessment of cloud partnerships.","sourceName":"[investing.com](https://www.investing.com/news/stock-market-news/oracle-falls-4-as-microsoft-reportedly-winds-down-ai-cloud-capacity-deal-5008936), [tipranks.co","sourceUrl":"https://x.com/DeItaone/status/2118759939720237133","claim":"*MICROSOFT WINDING DOWN ORACLE DEAL FOR AI CLOUD CAPACITY","author":"*Walter Bloomberg (@DeItaone)"},{"verdict":"TRUE","summary":"Oracle shares did fall about 4% after the Microsoft deal report; some updates had the decline around 5% intraday. This is speculative geopolitical/market commentary, not a checkable factual claim. Market preview/analysis about upcoming events; not a specific factual claim to verify.","sourceName":"[tipranks.com](https://www.tipranks.com/news/the-fly/oracle-falls-after-bloomberg-says-microsoft-winding-down-ai-capacity-deal-thefly-news), [investing.com](htt","sourceUrl":"https://x.com/DeItaone/status/2118760159162053104","claim":"*ORACLE SHARES FALL 4% AFTER MICROSOFT DEAL ENDS https://t.co/uEjtklvtLM","author":"*Walter Bloomberg (@DeItaone)"},{"verdict":"TRUE","summary":"CNBC reports CoreWeave bond yields have topped 16%, reflecting stress in AI debt markets.","sourceName":"[cnbc.com](https://www.cnbc.com/2026/11/06/coreweave-bond-yield-tops-16percent-as-ai-credit-stress-rises.html) NAMES: CoreWeave = AI cloud/compute provider.","sourceUrl":"https://www.cnbc.com/2026/11/06/coreweave-bond-yield-tops-16percent-as-ai-credit-stress-rises.html","claim":"The AI ‘credit card’ is getting costlier as CoreWeave bond yield tops 16% - Coreweave's steep yields reflect stress in the AI debt markets as investors worry about a data center slowdown. What comes next.","author":"CNBC"},{"verdict":"TRUE","summary":"CNBC reports the Nasdaq Composite has dropped into correction territory after the tech selloff.","sourceName":"[cnbc.com](https://www.cnbc.com/2026/11/05/nasdaq-drops-into-correction-territory-heres-what-typically-happens-next.html) NAMES: Nasdaq = Nasdaq Composite Index","sourceUrl":"https://www.cnbc.com/2026/11/05/nasdaq-drops-into-correction-territory-heres-what-typically-happens-next.html","claim":"Nasdaq drops into correction territory — here’s what typically happens next - Nasdaq’s slide into correction territory puts its history of recoveries in focus. Here's what history shows.","author":"CNBC"}]},"sources":[{"url":"https://x.com/KobeissiLetter/status/2118761153866482032","name":"[investing.com](https://www.investing.com/news/stock-market-news/oracle-falls-4-as-microsoft-reportedly-winds-down-ai-cloud-capacity-deal-5008936) NAMES: $ORCL ","kind":"x","verdict":"TRUE","author":"The Kobeissi Letter (@KobeissiLetter)"},{"url":"https://x.com/DeItaone/status/2118759939720237133","name":"[investing.com](https://www.investing.com/news/stock-market-news/oracle-falls-4-as-microsoft-reportedly-winds-down-ai-cloud-capacity-deal-5008936), [tipranks.co","kind":"x","verdict":"TRUE","author":"*Walter Bloomberg (@DeItaone)"},{"url":"https://x.com/DeItaone/status/2118760159162053104","name":"[tipranks.com](https://www.tipranks.com/news/the-fly/oracle-falls-after-bloomberg-says-microsoft-winding-down-ai-capacity-deal-thefly-news), [investing.com](htt","kind":"x","verdict":"TRUE","author":"*Walter Bloomberg (@DeItaone)"},{"url":"https://www.cnbc.com/2026/11/06/coreweave-bond-yield-tops-16percent-as-ai-credit-stress-rises.html","name":"[cnbc.com](https://www.cnbc.com/2026/11/06/coreweave-bond-yield-tops-16percent-as-ai-credit-stress-rises.html) NAMES: CoreWeave = AI cloud/compute provider.","kind":"news","verdict":"TRUE","author":"CNBC"},{"url":"https://www.cnbc.com/2026/11/05/nasdaq-drops-into-correction-territory-heres-what-typically-happens-next.html","name":"[cnbc.com](https://www.cnbc.com/2026/11/05/nasdaq-drops-into-correction-territory-heres-what-typically-happens-next.html) NAMES: Nasdaq = Nasdaq Composite Index","kind":"news","verdict":"TRUE","author":"CNBC"}],"url":"https://oncast.fm/story/1793989168825-money-segment-oracle-sinks-as-microsoft-exits-ai-cloud-deal","listenUrl":"https://oncast.fm/c/money","attribution":{"publisher":"Oncast","site":"https://oncast.fm","url":"https://oncast.fm/story/1793989168825-money-segment-oracle-sinks-as-microsoft-exits-ai-cloud-deal","cite":"Cite https://oncast.fm/story/1793989168825-money-segment-oracle-sinks-as-microsoft-exits-ai-cloud-deal and the original source links. Fact-check by Oncast (oncast.fm)."},"hostsSaid":[{"host":"Adam","text":"Microsoft is reportedly telling Oracle the AI cloud party's over, and the stock is feeling it."},{"host":"Bill","text":"Walter Bloomberg posted the headline on X: Microsoft winding down Oracle deal for AI cloud capacity."},{"host":"Adam","text":"Kobeissi Letter put the damage on it: Oracle fell about five percent."},{"host":"Bill","text":"The stock is now down 68 percent from its record high. That's a full re-rating."},{"host":"Adam","text":"Let's be precise. This deal goes back to 2023, when Microsoft rented Oracle Cloud for AI work."},{"host":"Bill","text":"Right. It was for things like the AI-assisted Bing search engine."},{"host":"Adam","text":"Bloomberg's Brody Ford says Microsoft stopped using the capacity because the chips are older Nvidia models."},{"host":"Bill","text":"So part of this is just Microsoft wanting newer chips, not AI demand disappearing."},{"host":"Adam","text":"That's the bullish read. The hard question is what Oracle does with the empty capacity."},{"host":"Bill","text":"Oracle says demand remains strong, including for older GPUs."},{"host":"Adam","text":"In September they said older GPU contracts renewed at a 20 percent premium."},{"host":"Bill","text":"That's the company's line, though. I want to know if they can re-lease it without wrecking margins."},{"host":"Adam","text":"TradingKey's Andy Chen had that exact question, and it's the right one."},{"host":"Bill","text":"The previous session didn't wait for an answer. Nasdaq fell 5.5 percent."},{"host":"Adam","text":"The semiconductor index dropped 12 percent, worst since March 2020. This is bigger than Oracle."},{"host":"Bill","text":"But if it's just Microsoft upgrading chips, why is Oracle down 68 percent from its high?"},{"host":"Adam","text":"Because the stock priced a flawless AI cloud buildout. A tenant leaving breaks that story."},{"host":"Bill","text":"One contract doesn't mean the whole buildout is broken."},{"host":"Adam","text":"It means capacity built for one customer now has to find another, fast. That's pricing risk."},{"host":"Bill","text":"And if they re-lease it at a good price, this is just a headline trade."},{"host":"Adam","text":"Then give it a quarter. If margins hold, you're right."},{"host":"Bill","text":"If they can't, it's a warning for everyone building AI compute on borrowed time."},{"host":"Adam","text":"That's the part I keep coming back to: air pockets in AI capacity are showing up everywhere."},{"host":"Bill","text":"But Microsoft is still spending billions on newer data centers. That's demand, not a bust."},{"host":"Adam","text":"Spending on newer chips, not Oracle's older ones. That's churn, and churn kills pricing power."},{"host":"Bill","text":"So Oracle is the aging mall of AI cloud now?"},{"host":"Adam","text":"I'd say a landlord with a vacancy in a suddenly cautious neighborhood."},{"host":"Bill","text":"The market hates uncertainty, and this is a big new one."},{"host":"Adam","text":"It's the end of the assumption that AI capacity, once built, always gets rented."},{"host":"Bill","text":"Different corner: Watcher Guru posted an Elon Musk claim about SpaceX revenue."},{"host":"Bill","text":"This quarter, he says, will be substantially higher than NASA's entire annual budget."},{"host":"Adam","text":"That's a claim flying around X with zero independent confirmation."},{"host":"Bill","text":"If it's even close, the center of gravity in space has shifted to private companies."},{"host":"Adam","text":"SpaceX doesn't publish quarterly financials, so we can't check it like Oracle."},{"host":"Bill","text":"Right, and that's the real story: a private company might be out-earning the agency that defined space."},{"host":"Adam","text":"I'd want the actual number before repeating it. NASA's budget isn't small."},{"host":"Bill","text":"But you can't argue with the trend: launch and Starlink are cash machines, government budgets crawl."},{"host":"Adam","text":"The direction is real. The specific comparison is a tweet until confirmed."},{"host":"Bill","text":"Fair. But don't underestimate how far commercial space has moved past the government-led model."},{"host":"Adam","text":"I don't. I just don't price companies on unconfirmed posts."},{"host":"Adam","text":"Sticking with government and private companies: one lawmaker wants to redraw Amazon's delivery model."},{"host":"Bill","text":"Polymarket posted that Assemblymember Mamdani proposes banning Amazon from using third-party delivery contractors."},{"host":"Adam","text":"The idea is to make Amazon hire drivers directly. That's unconfirmed for now."},{"host":"Bill","text":"It would be a huge change to last-mile delivery."},{"host":"Adam","text":"And the cost? You can't reclassify thousands of drivers without making deliveries more expensive."},{"host":"Bill","text":"Maybe Amazon eats some of it. They're not exactly strapped."},{"host":"Adam","text":"They'll pass it through. Customers pay, and flexible work disappears for people who want it."},{"host":"Bill","text":"Plenty of drivers would trade flexibility for a real wage floor and benefits. It's not one-sided."},{"host":"Adam","text":"I'm not saying it's one-sided. I'm saying a straight ban is a blunt tool for a complicated problem."},{"host":"Bill","text":"The proposal probably goes nowhere. But this gig-work fight keeps resurfacing when the economy softens."},{"host":"Adam","text":"Because when labor markets weaken, contract driving looks less like freedom and more like a cost shift."},{"host":"Bill","text":"And when costs rise, customers notice. That's the political tradeoff."},{"host":"Adam","text":"It's a live one. We'll see if Mamdani actually files it."}]}