TradingKey – Shares of Oracle (ORCL) tumbled. According to people familiar with the matter, Microsoft (MSFT) is winding down an arrangement to rent AI computing capacity from Oracle, part of a broader reevaluation of their multi-billion-dollar cloud partnership.

Following the news, Oracle shares fell more than 4% at one point to their lowest level since March 2024. As of press time, the decline narrowed to 2.3%, trading at $112.51.

Oracle Stock Chart, Source: TradingView

People familiar with the matter said that in recent months, after declining to renew the contract, Microsoft has begun gradually discontinuing the use of computing capacity leased from Oracle. The hardware uses older-generation chips from Nvidia (NVDA) and, as Microsoft’s…