Microsoft reportedly abandoned a $3 billion deal to lease cloud infrastructure from Oracle. Negotiations collapsed because Oracle’s public cloud lacks the FedRAMP certification required to handle U.S. government data.
Oracle allegedly declined the significant engineering effort needed to implement the required security framework. This development highlights the surging demand for computing power driven by the global AI boom.
Oracle disputed the report and characterized the details as inaccurate. The company affirmed that it maintains a strong partnership with Microsoft.