Elon Musk’s xAI, Oracle Abandon $10 Bn Server Deal: Report
Musk announced on his social media platform, X, that xAI will independently build a system using Nvidia’s H100 graphics processing units.
Elon Musk’s artificial intelligence startup, xAI, and tech giant Oracle have ended negotiations over a potential USD 10 billion server deal, according to a report by The Information on Tuesday.
The discussions aimed to expand an existing arrangement in which xAI rents Nvidia’s AI chips from Oracle’s cloud services.
Musk announced on his social media platform, X, that xAI will independently build a system using Nvidia’s H100 graphics processing units. The startup initially planned a multi-year agreement with Oracle to rent Nvidia processors for a supercomputer. However, the talks were stalled due to Musk’s ambitious demands for a supercomputer faster than Oracle deemed achievable.
Further complicating the negotiations were Oracle’s concerns regarding the power supply at xAI’s preferred location, which they found inadequate for the project's needs.
