Tech giant Oracle is facing a setback in its potential $10 billion server deal with Elon Musk’s artificial intelligence company xAI. The talks have reportedly ended, with Musk now focusing on purchasing chips to build his own data center. This news has caused Oracle shares to trade lower, as reported by The Information.
In a statement, Musk also addressed the situation on X.Yahoo Finance. Despite the setback, Oracle’s stock has seen a significant surge this year, gaining nearly 35%. Market analysts remain bullish on the company’s performance, citing its strong presence in the public cloud market and its advancements in AI technology under the leadership of CEO Larry Ellison.
While the abrupt end to negotiations with xAI may have caused a minor dip in Oracle’s stock price, experts believe that the company’s long-term growth prospects remain solid. The public cloud market is continuing to expand, providing ample opportunities for Oracle to showcase its capabilities as an AI platform.
Overall, despite this recent development, Oracle’s performance this year has been commendable, and many investors are still optimistic about its future prospects. The company’s resilience and innovation in the rapidly evolving tech industry are key factors driving its success, even in the face of challenges such as the failed server deal with xAI.
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https://finance.yahoo.com/video/oracle-stock-dips-talks-musks-200414641.html
