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Business
Microsoft ends AI partnership with Oracle, triggering sharp fall in Oracle’s stock
✍️ Times of India
🗓 07 Nov 2026, 09:55 AM
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Microsoft’s decision to terminate its AI collaboration with Oracle forced the software giant to cut server capacity and reassess cloud commitments, pushing Oracle’s free‑cash‑flow lower and its shares down more than 50% since June.
Microsoft announced the termination of its AI partnership with Oracle, a move that immediately impacted Oracle’s operational planning. The decision led Oracle to deactivate a portion of its server capacity that had been earmarked for joint AI workloads.
The deactivation came alongside a broader review of cloud commitments that exceed $80 billion, according to sources familiar with the matter. Oracle is now re‑evaluating its cloud strategy and the financial assumptions that underpinned its recent AI data‑center expansion.
Analysts note that the pull‑back has strained Oracle’s free‑cash‑flow, contributing to a steep decline in its share price – more than 50% lower than its level in June. The stock slide reflects investor concern over the reduced growth outlook after losing a major cloud partner.
The deactivation came alongside a broader review of cloud commitments that exceed $80 billion, according to sources familiar with the matter. Oracle is now re‑evaluating its cloud strategy and the financial assumptions that underpinned its recent AI data‑center expansion.
Analysts note that the pull‑back has strained Oracle’s free‑cash‑flow, contributing to a steep decline in its share price – more than 50% lower than its level in June. The stock slide reflects investor concern over the reduced growth outlook after losing a major cloud partner.