Oncast Money · Money Lunch

Oracle sinks as Microsoft exits AI cloud deal

· Fact-checked before it aired. Unconfirmed claims from this segment are not shown.

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.

The 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.

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.

Bloomberg reports Microsoft is winding down the Oracle AI cloud-capacity deal as part of a broader reassessment of cloud partnerships.

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.

CNBC reports CoreWeave bond yields have topped 16%, reflecting stress in AI debt markets.

CNBC reports the Nasdaq Composite has dropped into correction territory after the tech selloff.

Fact-check

VERIFIED 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.

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

Original post · The Kobeissi Letter (@KobeissiLetter)

[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

VERIFIED TRUE

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.

*ORACLE SHARES FALL 4% AFTER MICROSOFT DEAL ENDS https://t.co/uEjtklvtLM

Original post · *Walter Bloomberg (@DeItaone)

[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

Sources

What the hosts said

AMicrosoft is reportedly telling Oracle the AI cloud party's over, and the stock is feeling it.
BWalter Bloomberg posted the headline on X: Microsoft winding down Oracle deal for AI cloud capacity.
AKobeissi Letter put the damage on it: Oracle fell about five percent.
BThe stock is now down 68 percent from its record high. That's a full re-rating.
ALet's be precise. This deal goes back to 2023, when Microsoft rented Oracle Cloud for AI work.
BRight. It was for things like the AI-assisted Bing search engine.
ABloomberg's Brody Ford says Microsoft stopped using the capacity because the chips are older Nvidia models.
BSo part of this is just Microsoft wanting newer chips, not AI demand disappearing.
AThat's the bullish read. The hard question is what Oracle does with the empty capacity.
BOracle says demand remains strong, including for older GPUs.
AIn September they said older GPU contracts renewed at a 20 percent premium.
BThat's the company's line, though. I want to know if they can re-lease it without wrecking margins.
ATradingKey's Andy Chen had that exact question, and it's the right one.
BThe previous session didn't wait for an answer. Nasdaq fell 5.5 percent.
AThe semiconductor index dropped 12 percent, worst since March 2020. This is bigger than Oracle.
BBut if it's just Microsoft upgrading chips, why is Oracle down 68 percent from its high?
ABecause the stock priced a flawless AI cloud buildout. A tenant leaving breaks that story.
BOne contract doesn't mean the whole buildout is broken.
AIt means capacity built for one customer now has to find another, fast. That's pricing risk.
BAnd if they re-lease it at a good price, this is just a headline trade.
AThen give it a quarter. If margins hold, you're right.
BIf they can't, it's a warning for everyone building AI compute on borrowed time.
AThat's the part I keep coming back to: air pockets in AI capacity are showing up everywhere.
BBut Microsoft is still spending billions on newer data centers. That's demand, not a bust.
ASpending on newer chips, not Oracle's older ones. That's churn, and churn kills pricing power.
BSo Oracle is the aging mall of AI cloud now?
AI'd say a landlord with a vacancy in a suddenly cautious neighborhood.
BThe market hates uncertainty, and this is a big new one.
AIt's the end of the assumption that AI capacity, once built, always gets rented.
BDifferent corner: Watcher Guru posted an Elon Musk claim about SpaceX revenue.
BThis quarter, he says, will be substantially higher than NASA's entire annual budget.
AThat's a claim flying around X with zero independent confirmation.
BIf it's even close, the center of gravity in space has shifted to private companies.
ASpaceX doesn't publish quarterly financials, so we can't check it like Oracle.
BRight, and that's the real story: a private company might be out-earning the agency that defined space.
AI'd want the actual number before repeating it. NASA's budget isn't small.
BBut you can't argue with the trend: launch and Starlink are cash machines, government budgets crawl.
AThe direction is real. The specific comparison is a tweet until confirmed.
BFair. But don't underestimate how far commercial space has moved past the government-led model.
AI don't. I just don't price companies on unconfirmed posts.
ASticking with government and private companies: one lawmaker wants to redraw Amazon's delivery model.
BPolymarket posted that Assemblymember Mamdani proposes banning Amazon from using third-party delivery contractors.
AThe idea is to make Amazon hire drivers directly. That's unconfirmed for now.
BIt would be a huge change to last-mile delivery.
AAnd the cost? You can't reclassify thousands of drivers without making deliveries more expensive.
BMaybe Amazon eats some of it. They're not exactly strapped.
AThey'll pass it through. Customers pay, and flexible work disappears for people who want it.
BPlenty of drivers would trade flexibility for a real wage floor and benefits. It's not one-sided.
AI'm not saying it's one-sided. I'm saying a straight ban is a blunt tool for a complicated problem.
BThe proposal probably goes nowhere. But this gig-work fight keeps resurfacing when the economy softens.
ABecause when labor markets weaken, contract driving looks less like freedom and more like a cost shift.
BAnd when costs rise, customers notice. That's the political tradeoff.
AIt's a live one. We'll see if Mamdani actually files it.

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