diff --git a/go.mod b/go.mod
index 347ba07bb9..98d0ebcbc2 100644
--- a/go.mod
+++ b/go.mod
@@ -19,7 +19,7 @@ require (
 	github.com/hashicorp/golang-lru v0.5.0 // indirect
 	github.com/onsi/ginkgo v1.8.0
 	github.com/onsi/gomega v1.5.0
-	github.com/openshift/cluster-api v0.0.0-20190820083002-b2bf995e2bba
+	github.com/openshift/cluster-api v0.0.0-20190829140302-072f7d777dc8
 	github.com/openshift/cluster-api-actuator-pkg v0.0.0-20190527090340-7628df78fb4c
 	github.com/openshift/cluster-autoscaler-operator v0.0.0-20190521201101-62768a6ba480 // indirect
 	github.com/openshift/machine-api-operator v0.0.0-20190312153711-9650e16c9880 // indirect
diff --git a/go.sum b/go.sum
index e64f6b8083..bcc89aa0ac 100644
--- a/go.sum
+++ b/go.sum
@@ -134,8 +134,8 @@ github.com/onsi/gomega v1.4.2 h1:3mYCb7aPxS/RU7TI1y4rkEn1oKmPRjNJLNEXgw7MH2I=
 github.com/onsi/gomega v1.4.2/go.mod h1:ex+gbHU/CVuBBDIJjb2X0qEXbFg53c61hWP/1CpauHY=
 github.com/onsi/gomega v1.5.0 h1:izbySO9zDPmjJ8rDjLvkA2zJHIo+HkYXHnf7eN7SSyo=
 github.com/onsi/gomega v1.5.0/go.mod h1:ex+gbHU/CVuBBDIJjb2X0qEXbFg53c61hWP/1CpauHY=
-github.com/openshift/cluster-api v0.0.0-20190820083002-b2bf995e2bba h1:4krj3ro7WpAdWiebb6PrAbG42/mnPWUyynYVVuriEpg=
-github.com/openshift/cluster-api v0.0.0-20190820083002-b2bf995e2bba/go.mod h1:mNsD1dsD4T57kV4/C6zTHke/Ro166xgnyyRZqkamiEU=
+github.com/openshift/cluster-api v0.0.0-20190829140302-072f7d777dc8 h1:L3tal3e86m4sx7BHr4m2xO4MA43clI52GBLurB/Vdl8=
+github.com/openshift/cluster-api v0.0.0-20190829140302-072f7d777dc8/go.mod h1:mNsD1dsD4T57kV4/C6zTHke/Ro166xgnyyRZqkamiEU=
 github.com/openshift/cluster-api-actuator-pkg v0.0.0-20190527090340-7628df78fb4c h1:tXfKL0ifKs+3DZCBVkXQXcW9qRYuSm7LWCGGXkRreMk=
 github.com/openshift/cluster-api-actuator-pkg v0.0.0-20190527090340-7628df78fb4c/go.mod h1:KNPaA64x3Ok7z538kvS2acwC5fEwvPfF0RdTx2geQEE=
 github.com/openshift/cluster-autoscaler-operator v0.0.0-20190521201101-62768a6ba480 h1:iIrMvq8qRMfmuhw/TVB4usRN/BlH2huBKgtrRjucOU4=
diff --git a/vendor/github.com/openshift/cluster-api/pkg/controller/machine/controller.go b/vendor/github.com/openshift/cluster-api/pkg/controller/machine/controller.go
index 11f1546461..6b54f552d5 100644
--- a/vendor/github.com/openshift/cluster-api/pkg/controller/machine/controller.go
+++ b/vendor/github.com/openshift/cluster-api/pkg/controller/machine/controller.go
@@ -24,9 +24,11 @@ import (
 
 	"github.com/go-log/log/info"
 	clusterv1 "github.com/openshift/cluster-api/pkg/apis/cluster/v1alpha1"
+	commonerrors "github.com/openshift/cluster-api/pkg/apis/machine/common"
 	machinev1 "github.com/openshift/cluster-api/pkg/apis/machine/v1beta1"
 	controllerError "github.com/openshift/cluster-api/pkg/controller/error"
 	kubedrain "github.com/openshift/cluster-api/pkg/drain"
+	clusterapiError "github.com/openshift/cluster-api/pkg/errors"
 	"github.com/openshift/cluster-api/pkg/util"
 	corev1 "k8s.io/api/core/v1"
 	apierrors "k8s.io/apimachinery/pkg/api/errors"
@@ -217,8 +219,16 @@ func (r *ReconcileMachine) Reconcile(request reconcile.Request) (reconcile.Resul
 		}
 
 		if err := r.actuator.Delete(ctx, cluster, m); err != nil {
-			klog.Errorf("Failed to delete machine %q: %v", name, err)
-			return delayIfRequeueAfterError(err)
+			// isInvalidMachineConfiguration will take care of the case where the
+			// configuration is invalid from the beginning. len(m.Status.Addresses) > 0
+			// will handle the case when a machine configuration was invalidated
+			// after an instance was created. So only a small window is left when
+			// we can loose instances, e.g. right after request to create one
+			// was sent and before a list of node addresses was set.
+			if  len(m.Status.Addresses) > 0 || !isInvalidMachineConfigurationError(err) {
+				klog.Errorf("Failed to delete machine %q: %v", name, err)
+				return delayIfRequeueAfterError(err)
+			}
 		}
 
 		if m.Status.NodeRef != nil {
@@ -366,3 +376,14 @@ func delayIfRequeueAfterError(err error) (reconcile.Result, error) {
 	}
 	return reconcile.Result{}, err
 }
+
+func isInvalidMachineConfigurationError(err error) bool {
+	switch t := err.(type) {
+	case *clusterapiError.MachineError:
+		if t.Reason == commonerrors.InvalidConfigurationMachineError {
+			klog.Infof("Actuator returned invalid configuration error: %v", err)
+			return true
+		}
+	}
+	return false
+}
diff --git a/vendor/modules.txt b/vendor/modules.txt
index c8d014596b..c6ce0a33a0 100644
--- a/vendor/modules.txt
+++ b/vendor/modules.txt
@@ -167,7 +167,7 @@ github.com/onsi/gomega/matchers/support/goraph/bipartitegraph
 github.com/onsi/gomega/matchers/support/goraph/edge
 github.com/onsi/gomega/matchers/support/goraph/node
 github.com/onsi/gomega/matchers/support/goraph/util
-# github.com/openshift/cluster-api v0.0.0-20190820083002-b2bf995e2bba
+# github.com/openshift/cluster-api v0.0.0-20190829140302-072f7d777dc8
 github.com/openshift/cluster-api/cmd/manager
 github.com/openshift/cluster-api/pkg/apis/machine/v1beta1
 github.com/openshift/cluster-api/pkg/apis