Oracle Drops After Musk’s xAI Shifts Away From Cloud Deal
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Oracle Corp. dropped as much as 4.8% after Elon Musk said his artificial intelligence startup would rely less on cloud technology from the software maker, jeopardizing a potentially lucrative revenue stream.
In a post Tuesday on his social network X, Musk said his company, xAI, decided to build a system to train AI models internally because “our fundamental competitiveness depends on being faster than any other AI company.” The Information reported earlier that the companies had ended talks on a potential $10 billion cloud agreement.