Oracle (ORCL) was indicated at $116.50 in pre-market trading on Monday, up 0.34% from Friday’s $116.10 close, as investors digested a Bloomberg report that Microsoft is winding down a 2023 agreement to rent AI computing capacity from Oracle after declining to renew it. The stock remains pinned near the $116 price of Oracle’s recent share sale, two sessions after touching a 52-week low of $109.21.
According to 24/7 Wall St. citing Bloomberg, Microsoft has been switching off rented capacity in recent months because the older-generation chips no longer fit its needs. The full size of the deal was never disclosed. Oracle did not deny the report, with a spokesperson saying demand for its AI cloud infrastructure 'remains strong,' including for earlier-generation chips. Oracle had also said in September it was renewing contracts for four-year-old chips at a 20% premium to the original price.
The report adds pressure to Oracle’s concentration risk. Oracle’s backlog of signed contracts has reached $664 billion, and S&P estimates a single AI customer accounts for about half of it. Oracle recently sold 86.2 million shares at $116 on 2 November and issued $10 billion of notes, making that price level a key anchor. The stock fell as low as $109.21 on Friday before closing up 0.82% at $116.10. A close below $116 could point to $106, while resistance sits at $119.70 and $130.
Alphabet (GOOGL) Class A shares were indicated at $293.52 pre-market, up 3.07% from Friday’s $284.78 close, after Google announced two new AI systems: the TPU 8tx for confidential computing and the TPU 8i Max for long-context AI workloads. Google’s chief technologist for AI and infrastructure, Amin Vahdat, said the approach lets the company deliver 'specialized supercomputers in a matter of months rather than years.' No prices or availability dates were given.
The TPU 8tx pairs the TPU 8t chip with AMD processors and is aimed at regulated companies and governments, cutting latency by up to half compared with the TPU 8t. The TPU 8i Max puts two TPU 8i chips on one package, doubling compute, on-chip memory and memory bandwidth in the same rack space. The launch lands on a day Nvidia shares were down about 5% pre-market after its board opened an independent investigation.
Alphabet also is exploring its first Hong Kong dollar and Singapore dollar bonds worth $2.5 billion to $3 billion combined, according to Bloomberg. That fits a heavy spending picture: Alphabet kept 2026 capital spending at $195 billion to $205 billion and said it will 'increase significantly in 2027.' Google Cloud revenue rose 103% to $30.7 billion in the third quarter, but free cash flow was negative $9.07 billion after $51.36 billion in capital spending.
Both stocks face a macro test on Tuesday, when the US October CPI report is due at 8:30 a.m. ET. For Oracle, key levels are $106 below and $130 above; for Alphabet, the $277 area below and $325 above. Neither stock is a cryptocurrency, and the news has no direct coin-specific impact, but it may shape broader risk appetite in technology and AI-linked markets.
