New York: Elon Musk’s artificial intelligence startup, xAI, and tech giant Oracle have terminated discussions on a potential $10 billion server deal, according to a report by The Information on Tuesday. The negotiations aimed to expand xAI’s existing arrangement of renting Nvidia’s AI chips from Oracle’s cloud infrastructure, sources familiar with the matter revealed.
Musk announced via his social media platform X that xAI is actively developing a system using Nvidia’s H100 graphics processing units independently. Initially, talks involved a multi-year agreement with Oracle to lease Nvidia processors for a planned supercomputer. However, negotiations encountered hurdles due to Musk’s ambitious timeline demands, which Oracle deemed impractical, The Information reported. Additionally, Oracle expressed concerns about the adequacy of power supply at xAI’s preferred location.
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Requests for comment from Oracle and Elon Musk’s representatives were not immediately responded to, as reported by Reuters.
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