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Oracle shares fell 4% after Bloomberg reported that Microsoft had decided not to renew an agreement to lease AI computing capacity and had begun phasing out its use in recent months, as equipment powered by older generations of Nvidia chips no longer met its technical requirements. Oracle said demand for its infrastructure, including older GPUs, remained strong, pointing to renewed contracts to use chips released four years ago at a 20% price premium. The report came amid a broad sell-off in technology stocks, with the Nasdaq falling 5.5% and the semiconductor index dropping 12%, heightening investor concerns about spending on AI infrastructure.
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