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Microsoft suddenly changes its tune! Ending its AI computing lease with Oracle—reshuffling begins in the AI compute wars?

Another major development in the AI industry! Microsoft is gradually terminating its agreements to lease AI computing capacity from Oracle and reassessing several data center partnership projects.

Why the sudden change? One important reason is that the NVIDIA GPUs in Oracle's servers are from an earlier generation and are gradually failing to meet Microsoft's evolving technical needs.

Put simply, having computing capacity used to be enough. Now Microsoft is becoming more selective about the computing capacity it uses!

Meanwhile, delays in data center construction and rising costs are also making tech giants pay more attention to returns on investment.

This signals that the AI industry is entering a new phase: in the past, the question was who bought the most chips; now it's who has the most advanced computing capacity, the lowest costs, and the fastest delivery.

For Oracle and other computing capacity providers, this is undoubtedly a stress test.

The AI gold rush isn't over, but not everyone selling shovels will make money.$NVDA
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