---
title: "Microsoft’s talks to lease Oracle cloud capacity have collapsed, report says"
url: https://daily.dev/posts/microsoft-s-talks-to-lease-oracle-cloud-capacity-have-collapsed-report-says-qpi0y9peb
source_url: https://thenextweb.com/news/microsoft-oracle-cloud-talks-collapse
type: article
source: "The Next Web"
published: 2026-06-17T11:44:52.983Z
updated: 2026-06-17T11:45:10.433Z
tags: ["security", "cloud", "microsoft", "oracle", "ai-infrastructure"]
reading_time: 4
upvotes: 0
comments: 0
language: en
---

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# Microsoft’s talks to lease Oracle cloud capacity have collapsed, report says

**[The Next Web](https://daily.dev/sources/tnw)** · 4 min read · 0 upvotes · 0 comments

## Summary

Talks between Microsoft and Oracle over a $3bn+ cloud infrastructure leasing deal have reportedly collapsed, with the sticking point being Oracle's unwillingness to add FedRAMP certification to its public cloud. FedRAMP is required for handling US government data, and without it the capacity couldn't serve the government-adjacent workloads that made the deal worthwhile. Oracle disputes the report, calling the characterization inaccurate and describing an ongoing collaborative relationship with Microsoft. The episode highlights how compliance requirements can block major deals even amid intense AI infrastructure demand, and adds to broader analyst concerns about the sustainability of the current AI build-out spending wave.

## Full article

daily.dev links to this article rather than hosting it. Read it at the original source: <https://thenextweb.com/news/microsoft-oracle-cloud-talks-collapse>

---

Tags: [#security](https://daily.dev/tags/security), [#cloud](https://daily.dev/tags/cloud), [#microsoft](https://daily.dev/tags/microsoft), [#oracle](https://daily.dev/tags/oracle), [#ai-infrastructure](https://daily.dev/tags/ai-infrastructure)

[View this post on daily.dev](https://daily.dev/posts/microsoft-s-talks-to-lease-oracle-cloud-capacity-have-collapsed-report-says-qpi0y9peb)
