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Elon Musk's xAI Nears $10 Billion Deal to Rent Oracle's AI Servers, Shares Rise 5.3%

May 14, 2024, 04:15 PM

Elon Musk's 1-year-old artificial intelligence startup, xAI, is nearing a multiyear deal to spend $10 billion to rent AI servers from Oracle. This substantial agreement would position xAI as one of Oracle's largest customers. The deal is part of xAI's strategy to compete with other AI companies such as OpenAI and Anthropic, which have made similar arrangements with Oracle's competitors. Following the news, Oracle's shares rose as much as 5.3%. The Information reported that the discussions have been ongoing with Oracle executives.