The news is a clarification of deal-talk reporting rather than a confirmed deal outcome, but it can still affect near-term sentiment around Oracle–Microsoft cloud collaboration and deal prospects.
Oracle says details in report of failed Microsoft cloud deal talks 'inaccurate' FILE PHOTO: Web Summit digital trade show in Vancouver · Reuters Reuters Tue, June 16, 2026 at 10:06 PM GMT+2 1 min read MSFT ORCL June 16 (Reuters) - Oracle said on Tuesday that details in a Business Insider report on the collapse of its discussions with Microsoft over a potential leasing deal were inaccurate. The report had said that Microsoft's discussions with Oracle regarding a cloud infrastructure leasing deal have fallen apart due to security and compliance concerns. More from Yahoo Scout What did Oracle say about the Business Insider report?
What were the reported reasons for deal discussions failing? What is Microsoft's current relationship with Oracle's cloud services? How much was the Microsoft-Oracle deal worth?
Microsoft declined to comment on the report, which cited people familiar with the matter. Reuters could not independently verify the report. Microsoft planned to shift some workload to Oracle's cloud infrastructure.
But Oracle's public cloud lacked Federal Risk and Authorization Management Program, a required security framework for handling U. S. government data, and the company was unwilling to add it, according to the report.
The deal could have been worth more than $3 billion, the report from Business Insider said, citing one of the people. Microsoft is seeking a deal or deals with other cloud providers to prioritize its own Azure cloud computing resources on customers, according to the report. "The details mentioned in the article are inaccurate.
Microsoft is both an OCI partner and a customer. We have a tremendously collaborative and fruitful partnership, where we often talk about ways we can expand upon our ongoing work together," an Oracle spokesperson said in an emailed response.
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