Microsoft Held Talks to Lease Oracle Cloud Capacity in $3B+ Deal
Microsoft reportedly considered a deal worth over $3 billion to lease cloud computing capacity from Oracle, but negotiations fell through over security and compliance concerns.
Microsoft and Oracle reportedly held discussions about a deal that would have seen Microsoft lease cloud computing capacity from Oracle, with a potential value exceeding $3 billion. The talks were driven by surging demand for AI and cloud infrastructure.
According to people familiar with the matter, the negotiations were ultimately abandoned after Microsoft raised security and compliance issues regarding Oracle's cloud infrastructure. The failed deal underscores the growing importance of security standards in large-scale AI and cloud partnerships.
Neither Microsoft nor Oracle have publicly commented on the reported discussions.
Source: First Squawk