Microsoft reportedly abandoned negotiations to lease more than $3 billion of Oracle Cloud Infrastructure capacity for its artificial intelligence workloads. No formal multi-year agreement had been signed, and the main obstacle was Oracle’s public cloud lacking FedRAMP certification, with the company describing the work required as a massive engineering lift. Oracle disputed the account published by Business Insider while stressing that Microsoft remains both a partner and a customer. Microsoft is now seeking alternative cloud providers to add capacity for Azure and is considering a possible arrangement involving a data center in Texas. The collapse of the discussions highlights how regulatory compliance can constrain AI and cloud infrastructure deals as much as hardware availability and power supply.
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