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AUSTIN, Texas - xAI has chosen Oracle (NYSE: ORCL), whose stock has surged over 51% in the past year, to deliver its Grok models through Oracle Cloud Infrastructure’s (OCI) Generative AI service, according to a press release issued Tuesday. The partnership will enable customers to use Grok models for content creation, research, and business process automation.
In addition to making Grok available through OCI, xAI will utilize Oracle’s AI infrastructure to train and run inferencing for its next-generation models. The company’s latest offering, Grok 3, features enhanced reasoning capabilities developed through large-scale reinforcement learning.
"Grok 3 represents a leap forward in AI capabilities and Oracle’s advanced data platform will accelerate its impact on enterprises," said Jimmy Ba, co-founder of xAI, in the statement.
Oracle emphasized that data sent to Grok models will be processed on zero data retention endpoints, providing additional security for enterprise customers. The partnership aims to combine xAI’s models with Oracle’s enterprise-grade data governance, management, and security capabilities. According to InvestingPro data, Oracle maintains a strong position in the software industry, with 12 analysts recently revising their earnings expectations upward for the upcoming period.
Windstream, a telecommunications service provider, is exploring the use of xAI’s multimodal models via OCI to improve workflows. "We think there could be real advantages to leveraging Grok models via OCI Generative AI service," said Kaushik Bhanderi, senior vice president at Windstream.
Founded in March 2023, xAI develops technologies focused on advancing AI capabilities. Oracle (NYSE: ORCL) offers integrated applications and infrastructure through Oracle Cloud.
The announcement comes as more technology companies seek to expand access to advanced AI models for enterprise applications. With Oracle trading near its 52-week high of $216.60 and showing robust revenue growth of 8.4% over the last twelve months, investors can access detailed valuation analysis and 20+ additional exclusive insights through InvestingPro’s comprehensive research reports.
In other recent news, Oracle reported robust fiscal fourth-quarter results, with total revenue reaching $15.9 billion, marking an 11% year-over-year increase in constant currency. The company’s cloud infrastructure segment, Oracle Cloud Infrastructure (OCI), experienced significant growth, with a 62% increase during the quarter, driven by demand for AI computing resources. Oracle’s strong performance has led several research firms to raise their price targets. Jefferies increased its target to $220, citing Oracle’s growth in revenue performance obligations and future cloud revenue prospects. BNP Paribas Exane also raised its target to $226, highlighting Oracle’s better-than-expected revenue and earnings per share, along with strong guidance for fiscal year 2026. UBS set a new target of $225, noting Oracle’s extraordinary backlog growth and resilience against challenging economic conditions. Meanwhile, DA Davidson raised its target to $170, acknowledging OCI’s accelerated growth but expressing caution about potential profit growth due to a shift in business operations. Additionally, Oracle announced plans to deploy AMD Instinct MI355X GPUs in its cloud infrastructure, enhancing its AI computing capabilities.
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