Oracle's Stock Rises on Potential $10 Billion Cloud Deal with Musk's xAI

Elon Musk's AI startup xAI may become one of Oracle's largest customers, significantly boosting Oracle's cloud business.

The deal, reportedly worth $10 billion, would involve xAI renting cloud servers from Oracle over several years.
Oracle shares saw an increase of over 3%, reaching a high of $122 before settling slightly lower.
This partnership could position Oracle as a stronger competitor against cloud giants Amazon and Microsoft.
xAI is also in discussions to raise up to $6 billion in equity funding, potentially valuing the company at $18 billion.
Oracle has previously supported xAI with high-powered computing chips from Nvidia.