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Why Is xAI Moving Grok to Oracle Cloud?

Oracle and xAI

xAI and Oracle have partnered to bring Grok models to the Oracle Cloud Infrastructure (OCI), making them available through Oracle’s Generative AI services. This collaboration will support use cases like content creation and research to business process automation.

As part of the deal, xAI will use OCI’s infrastructure to train and run inferencing for upcoming versions of its Grok models. As the latest model in the series, Grok 3 is designed to handle advanced reasoning tasks and excels in areas like mathematics, coding, and general problem-solving.

Jimmy Ba, co-founder of xAI, noted that Oracle’s data platform will help speed up the model’s enterprise adoption, saying, “Grok 3 represents a leap forward in AI capabilities.”

Furthermore, Oracle’s cloud services will provide xAI with the scalability and performance needed to handle demanding AI workloads while making sure that strong data governance is in place. According to both companies, all data shared with Grok models via Oracle will be handled through zero data retention endpoints.

Interestingly, the partnership is already drawing interest from companies like Windstream, a telecom provider exploring the use of Grok’s multimodal capabilities via OCI to streamline workflows and support its workforce. With Grok models now available through OCI, xAI is positioning itself to play a larger role in enterprise AI. 

However, that’s not all. The xAI is continuously pushing the AI capabilities on its platform. For example, recently, xAI updated Grok, and now it comes with the ability to create charts and interpret user sketches as input, enhancing the ways users can interact with the AI. 

Apart from that, the xAI is in talks to raise $4.3 billion in equity funding and is also pursuing a $5 billion debt sale. This move is driven by the high costs of developing and deploying advanced AI systems for enterprise and other uses. 

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