Elon Musk’s artificial intelligence startup xAI and technology giant Oracle have recently concluded talks regarding a potential $10 billion server deal, as reported by The Information. The discussions involved an expansion of an existing agreement where xAI was leasing Nvidia’s AI chips from Oracle’s cloud services. Elon Musk mentioned on his social media platform X that xAI was solely utilizing Nvidia’s H100 graphics processing units for a new system.
Although negotiations were underway for a multi-year deal to rent Nvidia processors for a planned supercomputer with Oracle, challenges arose due to Musk’s desire to create a faster supercomputer than Oracle believed possible. Additionally, Oracle raised concerns about xAI’s preferred location lacking adequate power supplies. Both Oracle and Elon Musk’s representatives have yet to comment on the matter in response to requests from Reuters.
The discussions between Musk’s xAI and Oracle have drawn significant attention due to the potential size of the server deal and the involvement of such high-profile companies. As the talks continue, industry professionals are closely monitoring any developments that may arise from this collaboration.
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https://telecom.economictimes.indiatimes.com/amp/news/internet/musks-xai-oracle-end-talks-on-10-billion-server-deal-report/111621047
