Microsoft's AI shift drops CoreWeave stock by $3 amid revenue concerns

Microsoft and Oracle report significant AI-related infrastructure spending and backlogs. Microsoft's backlog grew 73% to $677B, with Q3 revenue up 19% to $92.3B. Oracle's backlog reached $664B, with Q1 revenue up 30% to $19.3B. Both companies expect continued heavy investment in AI. Vertiv, a supplier of cooling and power gear, saw Q3 revenue jump 61% to $4.31B.

Microsoft ended its contract with Oracle for AI infrastructure, citing outdated Nvidia chips. Oracle's stock fell 4%, below its recent $10B equity offering price. The move follows post-election data center policy shifts in key states, impacting Oracle's pipeline. Oracle disputes claims, stating demand for its AI infrastructure remains strong. Microsoft has also scaled back deals with other neocloud providers due to delays and costs.

Oracle (ORCL) shares dipped after Microsoft (MSFT) reportedly ended an AI computing capacity lease, citing outdated Nvidia chips. This highlights risks for ETFs like SKYY, which holds Oracle, Microsoft, and Amazon (AMZN), and SRVR, focused on data center infrastructure. OpenAI's potential data center capacity adjustments could also impact Oracle's $664B backlog, with the company planning significant capital expenditures.

Microsoft is ending a 2023 deal to rent AI cloud capacity from Oracle, as the hardware used older Nvidia chips. Oracle claims demand for such capacity remains strong. Microsoft is reassessing its cloud partnerships, having committed over $80B to various providers. Separately, AST SpaceMobile signed a $1.3B+ deal with Firefly Aerospace for rocket engines.

Microsoft is ending its 2023 AI computing rental deal with Oracle, opting not to renew it. The deal involved older Nvidia chips and was used for AI-powered Bing. Microsoft is reassessing over $80B in contracts with cloud providers, including talks with CoreWeave, Nscale, and Nebius. Oracle's shares fell about 3% after the news.

Microsoft is ending its 2023 deal with Oracle to rent AI cloud capacity, citing outdated Nvidia GPUs. Oracle's shares fell 4%. Microsoft is reassessing partnerships, preferring its own infrastructure. This follows Meta's similar cost-cutting moves. The decision highlights rapid advancements in AI compute needs.