Oracle Drops After Musk’s xAI Shifts Away From Cloud Deal

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.