Elon Musk’s xAI Ends $10 Billion Cloud Deal with Oracle

xAI opts to build internal AI-training infrastructure, impacting Oracle's growth prospects

Oracle shares fell nearly 5% following the announcement.
xAI will now use 24,000 Nvidia H100 chips for its Grok 2 model.
The decision highlights challenges for cloud providers like Microsoft and AWS.
Oracle had previously been in talks to expand its cloud services for xAI.
Concerns included power supply issues and Musk's demand for faster infrastructure.