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Musk's AI Startup Nears $10 Billion Deal to Rent Oracle's Cloud Servers, The Information Reports

May 14, 2024 at 01:14 pm EDT

By Dean Seal

--Elon Musk's artificial-intelligence startup xAI is nearing a $10 billion to rent Oracle's cloud servers over a multi-year period, according to a report from The Information that cites an unnamed source.

--The deal would make xAI one of Oracle's largest customers, the report said.

--The proposed deal would be similar in size to ones that Oracle's bigger cloud rivals have already struck with OpenAI and Anthropic, and comes as xAI finalizes a $6 billion equity funding round to help pay for cloud costs, according to The Information.

Full story: https://www.theinformation.com/articles/musks-xai-nears-10-billion-deal-to-rent-oracles-ai-servers

(END) Dow Jones Newswires

05-14-24 1313ET

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Elon Musk

Mr. Elon R. Musk is a Chief Executive Officer at The Boring Co., a Technoking of Tesla at Tesla, Inc., a Chief Executive Officer & Director at Space Exploration Technologies Corp., a Chief Executive & Technology Officer at Spacex SA and a Co-Chairman at OpenAir, Inc. He is on the Board of Directors at Tesla, Inc., Space Exploration Technologies Corp., Endeavor Group Holdings, Inc. and Musk Foundation. Mr. Musk was previously employed as a Trustee by California Institute of Technology, a Chairman by SolarCity Corp., a Chairman & Chief Executive Officer by PayPal, Inc., a Founder by Zip2 Corp., a Co-Founder by Neuralink Corp., a Co-Founder by OpenAI, Inc., a Non-Executive Director by Surrey Satellite Technology Ltd., and a Trustee by X PRIZE Foundation. He also served on the board at Everdream Corp. He received his undergraduate degree from the University of Pennsylvania and an undergraduate degree from The Wharton School of the University of Pennsylvania.

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Linked companies
TESLA, INC.	Founder
Space Exploration Technologies Corp. Space Exploration Technologies Corp. Aerospace & DefenseElectronic Technology Space Exploration Technologies Corp. designs, manufactures and launches rockets and spacecrafts. It develops the partially reusable launch vehicles Falcon 1 and Falcon 9. The company was founded by Elon Reeve Musk in 2002 and is headquartered in Hawthorne, CA.	Chief Executive Officer