Elon Musk’s artificial intelligence company xAI has reportedly ended negotiations with Oracle on a $10 billion server deal, as confirmed by The Information and Reuters. This decision by xAI has resulted in Oracle losing out on the opportunity to expand its AI chips and cloud services. The Wall Street Journal reports that Oracle’s shares dropped following this news, and Investor’s Business Daily notes that the company’s cloud expansion plans have now been abandoned.
Instead of partnering with Oracle, xAI is focusing on building its own supercomputer in Memphis, a move that has surprised many industry observers. This unexpected turn of events has led to speculation about Musk’s impatience with the negotiations, with The Times of India questioning the reasons behind xAI’s decision to walk away from the deal.
The fallout from this failed partnership has had a significant impact on Oracle’s stock price, with Investor’s Business Daily and Tipping Ranges reporting on the decline in Oracle’s shares following the news. This development marks a setback for Oracle as it attempts to compete in the increasingly competitive AI and cloud computing markets.
In conclusion, Elon Musk’s xAI has chosen to pursue its own path rather than continue negotiations with Oracle on the $10 billion server deal. This decision has had negative consequences for Oracle, causing its shares to fall and its cloud expansion plans to be put on hold. The implications of this decision for both xAI and Oracle remain to be seen as they navigate the evolving landscape of AI and cloud computing technology.
Article Source
https://www.reuters.com/technology/artificial-intelligence/oracle-musks-xais-10-bln-server-deal-talks-lapse-information-reports-2024-07-09/
