Oracle Stock Fell as it Ends Talks with Musk’s xAI Deal

On Tuesday, Oracle stock dipped following reports that it is no longer in talks with Elon Musk’s xAI startup for a cloud-computing expansion deal.

It fell by -3.00% to $140.68 per share on July 09. However, it is expected to rise by 0.25% to $141.03 apiece in after-hours.

Analysts mentioned that the startup and Oracle closed talks about expanding an existing arrangement involving Nvidia. xAI has been renting the company’s artificial intelligence (AI) chips from the cloud provider.

According to reports, the server, which could be worth up to $10.00 billion, aims to train large language models.

Elon Musk said xAI is establishing a system with Nvidia’s H100 graphics processing units to boost completion time.

Also, sources stated that the firm regularly discussed its infrastructure needs with customers about the upcoming capacity and with xAI.

Experts mentioned that a multi-year agreement to rent Nvidia processors from Oracle strategizing about a supercomputer was underway. However, talks were delayed due to the billionaire’s demands for an almost impossible building speed for the company.

In addition, the corporation raised concerns that Musk’s chosen location had inadequate power supply. On the other hand, xAI already has a deal to run AI models in Oracle’s Gen2 Cloud.

Palantir and Oracle Work on Cloud and AI Innovations

Oracle reported that the Foundry Platform and Artificial Intelligence Platform by Palantir are available throughout its cloud deployment options.

The two companies’ stocks are now looked out for amid the significant development of their AI dominance.

Moreover, Palantir experienced a successful month with a 20.00% share increase. The collaboration is expected to produce further gains, potentially continuing its winning streak.

According to Oracle’s Vice President, their company’s powerful cloud infrastructure, integrated with Palantir’s decision acceleration, will help customers scale AI capabilities. The combined efforts will allow customers to maximize the value of their data while meeting security standards.


User Review
0 (0 votes)


Leave a Reply