Oracle Expands Generative AI Services with xAI Partnership
Oracle has expanded its Generative AI services by partnering with xAI. The tech giant will host and run xAI's models on its cloud infrastructure, including Grok, a large language model developed by xAI. This move comes as Oracle focuses on customer demand rather than competing with rivals.
Oracle's Generative AI services now include models from xAI, Meta, Cohere, and Mistral. The company's hardware, originally designed for databases, also proves beneficial for GPU workloads in AI training. Oracle is adding Grok to its services, making it available to customers in industries like healthcare, finance, and legal.
In return, xAI will use Oracle Cloud to train and deploy the next versions of Grok. xAI is reportedly raising another $4.3 billion in equity funding, following a previous $5 billion debt round. The company's valuation has surged from $51 billion at the end of 2024 to $80 billion by March this year.
Oracle's partnership with xAI brings Grok to its Generative AI services, benefiting customers in various industries. Meanwhile, xAI gains access to Oracle's cloud infrastructure for training and deploying future Grok models. The deal reflects Oracle's customer-centric approach and xAI's growing influence in the AI landscape.
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