Oracle’s highly anticipated deal with xAI has fallen through, causing a drop in shares by nearly 3%. The agreement was to supply servers to the AI startup fronted by Elon Musk, but talks to expand services have ended. While the current deal involves Oracle leasing AI chips to xAI, new reports indicate that xAI will purchase chips from other sources for their Grok 2 project. Despite this setback, Oracle has seen positive developments, including a contract renewal with Birmingham City Council and resolved issues with TikTok. Wall Street analysts have a Moderate Buy consensus on ORCL stock, with an average target price of $149.35 per share, suggesting a 6.16% upside potential.
Article Source
https://www.tipranks.com/news/oracle-nyseorcl-slides-after-xai-deal-collapses
