"The details mentioned in the article are inaccurate," indicated an Oracle following a Business Insider report claiming that it severed its ties with Microsoft despite citing people familiar with the matter: "Microsoft is both an OCI partner and a customer. We have a tremendously collaborative and fruitful partnership, where we often talk about ways we can expand upon our ongoing work together."
The report claimed that the cloud deal between Oracle and Microsoft was under pressure due to security and compliance concerns, leading to its collapse (via Reuters). According to the dismissed report, the massive cloud deal was worth a whopping $3 billion, arguably one of the largest cloud infrastructure leasing deals.
According to the outlet: "The plan was to move some Microsoft workloads to Oracle Cloud Infrastructure, but Oracle's public cloud did not have the Federal Risk and Authorization Management Program (FedRAMP), a standardized security framework that ensures cloud services are secure enough to handle U.S. government data. Oracle was not willing to add this framework, one of the people said."
Microsoft reportedly planned to leverage its cloud partnership with Oracle to access additional computing power, enabling it to meet growing customer demand and support AI training and inferencing. As it happens, shareholders recently filed a class action lawsuit against Microsoft, accusing the company of hiding cloud weakness while pouring billions into AI infrastructure.
They added that the tech giant fueled investor enthusiasm by portraying a rock-solid partnership with OpenAI, despite its current fragmentation, alongside a strong Copilot rollout. Elsewhere, Microsoft has reportedly turned to its cloud rival, Amazon, for extra computing power following rampant AI‑driven GitHub outages. The stakes in these AI deals seem to keep growing, almost endlessly.
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