Microsoft is winding down its agreement to rent AI cloud capacity from Oracle. This arrangement previously allowed Microsoft Azure users to access Oracle's Nvidia GPU servers via a private link. The decision stems from Microsoft's strategy to build its own data centers and custom chips, reducing reliance on external partners.
Reports indicate that Oracle provided older Nvidia chips that have become less useful to Microsoft's current needs. By moving workloads back to its own systems, Microsoft aims to reduce costs and mitigate control risks. Oracle shares rose slightly following the announcement of the deal's termination.
In the broader market, a political shift in midterm elections triggered a rout in AI stocks, potentially impacting Anthropic's upcoming IPO valuation. Anthropic, a leading AI research company, has raised $1.5 billion in funding but now faces a tougher market environment as investor confidence wavers.
Meanwhile, Machina Labs secured a $9 million Pentagon contract to build metal airframes for LUCAS drones. The Los Angeles startup will use AI-powered robotic arms to mass-produce these drones, which were reverse-engineered from Iran's Shahed platform, targeting a per-drone cost of roughly $15,000.
Regulatory and political tensions also surround AI infrastructure. Democratic election wins have sparked concerns about state-level data center restrictions, while Interior Secretary Doug Burgum pushes for building data centers on federal lands. Burgum holds significant AI investments through his firm, Arthur Ventures, raising ethical questions about potential conflicts of interest.
On the technical front, researchers introduced DelegateEval, a framework to test personal AI service agents that work for individuals while serving external clients. Additionally, the SMART framework utilizes multiple AI agents to solve complex problems by gathering knowledge from real-world sources, improving validation performance by up to 20 percent.
Netflix researchers emphasize that subjective AI evaluations require at least two judges to ensure accuracy, noting that single benchmark runs can cost between $50,000 and $100,000. They recommend using human evaluation as a standard before training automated judges to match human judgments.
In the UK housing sector, Rightmove reported resilient earnings growth despite a weakening market. Brokers noted that AI-powered tools, such as call transcription and property performance features used by 14,000 estate agents, have accelerated the company's innovation pace with over 60% more product releases.
Market volatility continued as Nasdaq futures recovered after an AI-related selloff in Asian tech stocks. Nvidia shares rose close to 4% premarket as chip makers regained ground, while European AI stocks also rebounded following two days of heavy selling ahead of U.S. jobs data.
Key Takeaways
- Microsoft is ending its deal to rent AI cloud capacity from Oracle to rely on its own infrastructure.
- Oracle provided older Nvidia chips that are becoming less useful to Microsoft's evolving needs.
- Anthropic has raised $1.5 billion but faces a tougher IPO valuation due to a recent AI stock rout.
- Machina Labs won a $9 million Pentagon contract to use AI manufacturing for LUCAS drones.
- Interior Secretary Doug Burgum promotes federal land data centers while holding millions in AI investments.
- Voter backlash in Democratic states is increasing concerns over regulatory crackdowns on AI data centers.
- DelegateEval is a new framework designed to evaluate personal AI service agents across eight dimensions.
- The SMART framework uses multiple AI agents to solve complex problems with limited context.
- Netflix researchers state subjective AI evaluations need two judges to be reliable and accurate.
- Nvidia shares rose nearly 4% as Nasdaq futures recovered from an Asian AI stock selloff.
Microsoft ends Oracle AI cloud rental deal
Microsoft is winding down its deal to rent AI cloud capacity from Oracle. The setup let Microsoft Azure users access Oracle's Nvidia GPU servers through a private link. Microsoft is building its own data centers and custom chips so it needs less help from Oracle. Moving workloads back to Microsoft's own systems reduces cost and control risks.
Microsoft will not renew Oracle AI computing rental
Microsoft is ending its agreement with Oracle to rent AI computing power. Bloomberg reported the decision, and Oracle shares rose slightly after the news. The deal allowed Microsoft to use Oracle's hardware when its own capacity was not enough. Microsoft now plans to rely on its own growing cloud infrastructure.
Microsoft reportedly winding down Oracle cloud AI deal
Microsoft is winding down a cloud AI deal with Oracle. Sources said Oracle provided older Nvidia chips that had become less useful to Microsoft. The arrangement let Microsoft burst into Oracle's data centers for extra AI computing power. Microsoft is now focused on expanding its own hardware and data center capacity.
AI stock rout may hit Anthropic IPO valuation
The Blue Wave in midterm elections caused a broader market rout for AI stocks. This market decline could impact Anthropic's upcoming IPO valuation. Anthropic is a leading AI research company preparing to go public. The political outcome led to falling investor confidence in AI companies. Anthropic's plans for an IPO now face a tougher market environment.
Anthropic falling IPO valuation raises AI trade stakes
Anthropic's declining valuation could test the broader AI investment market. The AI model company has raised $1.5 billion in funding. Its IPO may set a precedent for how other AI companies are valued. Some investors worry the falling valuation signals a broader market downturn. The IPO represents a major milestone and a risk test for AI investments.
DelegateEval framework tests personal AI service agents
Researchers proposed DelegateEval, a platform-level evaluation framework for personal external service agents. These agents work for an individual while serving external clients using that person's expertise. The framework evaluates eight dimensions including ease of creation, delivery quality, and reliability. It aims to help platforms enable people to turn their skills into ongoing services at scale.
Rightmove brokers split on housing outlook amid AI optimism
Rightmove reported resilient earnings growth despite a weakening UK housing market and upgraded its 2026 guidance. Peel Hunt praised Rightmove's faster innovation pace with over 60% more product releases supported by AI. Panmure Liberum took a more cautious stance, noting the challenging housing market. Both brokers highlighted AI-powered tools like call transcription and property performance features used by 14,000 estate agents.
Nasdaq futures recover after Asian AI stock selloff
Nasdaq futures recovered after an AI-related selloff in Asian tech stocks ahead of U.S. jobs data. Nvidia shares rose close to 4% premarket as chip makers regained some ground. European AI stocks also recovered after two days of heavy selling. The market currently prices a 72.6% chance of a Federal Reserve rate hike in December based on the upcoming jobs report.
Machina Labs wins Pentagon drone contract using AI manufacturing
The Pentagon awarded Machina Labs a $9 million contract for an 18-month trial to build metal airframes for LUCAS drones. The Los Angeles robotics startup will use AI-powered robotic arms to mass-produce drones in modular factories. The LUCAS drones were reverse-engineered from Iran's Shahed platform. Machina targets a per-drone cost of roughly $15,000 and aims to eventually produce tens of thousands of drones annually.
AI data centers face voter backlash as China race intensifies
Democratic election wins have sparked concerns about regulatory crackdowns on AI infrastructure and state-level data center restrictions. Voter backlash against AI data centers is growing across the United States. Fox Business reported on a North Dakota exception and the increasing stakes in America's AI race with China. The backlash reflects worries about the impact of data centers on local communities.
Trump official pushes data centers on public lands while holding millions in AI investments
Interior Secretary Doug Burgum is leading the Trump administration's push to build data centers on federal lands. He has between $2.1 million and $11 million in capital gains from AI investments through his firm Arthur Ventures. In 2025, he sold AI stocks worth between $2.5 million and $15.1 million. About 380 Trump appointees or their spouses also hold significant AI industry investments. Ethics experts say Burgum should avoid decisions that benefit his own financial interests.
SMART framework uses multiple AI agents to solve complex problems
Researchers created a multi-agent framework called SMART to solve complex problems with limited context. It uses different large language models to gather knowledge from real-world sources. The system creates diverse and complementary premises for problem solving. SMART improved validation performance by up to 20 percent on scientific claims across three datasets. Grounding premises in real-world knowledge also boosted performance by up to 5 percent.
Netflix says subjective AI evaluations need two judges for accuracy
Netflix researcher Cameron Wolfe says subjective AI evaluations need at least two judges to be reliable. A single benchmark run can cost between $50,000 and $100,000. Wolfe recommends using human evaluation as a standard, then training automated judges to match human judgments. He showed that judge scores at Netflix were linked to viewer behavior like abandonment. The framework still lacks key numbers like sample sizes and agreement rates.
Sources
- Microsoft Is Pulling Back From Oracle AI Rental
- Microsoft Won’t Renew Deal for Renting AI Cloud Capacity From Oracle: Report
- Microsoft is reportedly “winding down” a cloud AI deal with Oracle.
- Blue Wave And AI Stock Rout Could Hit Anthropic's IPO Valuation: Reports
- Anthropic's falling IPO valuation raises stakes for broader AI trade
- DelegateEval: Evaluating Platforms for Personal External Service Agents
- Rightmove brokers split over housing market outlook as AI investment drives optimism
- Nasdaq Futures Rally After Asian AI Rout as Investors Brace for Jobs Day
- Machina Labs wins Pentagon drone contract on AI manufacturing
- AI data centers face voter backlash as China race intensifies
- Trump official who wants data centers on public lands has tens of millions invested in AI industry
- SMART: State-based Multi Agent Reasoning Traces for Verification-oriented Problem-Solving
- Netflix says subjective AI evals need two judges
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