Oracle and Musk-owned xAI near final agreement on $10 billion server deal

Oracle and Musk-owned xAI near final agreement on  billion server deal



Elon Musk’s xAI is ending its server lease with Oracle’s cloud storage due to differences in technological specifications for a supercomputer. xAI had been using Nvidia H100 GPUs with Oracle AI, but Musk announced on Twitter that they are now building their own system for faster processing speed. While Oracle has reallocated the server capacity, xAI still has an agreement to train its AI models on Oracle’s cloud infrastructure. They plan to build their own data center in Memphis, Tennessee powered by Nvidia chips purchased directly from Dell and Supermicro. Musk also plans to launch a new version of the AI chatbot Grok next month with a supercomputer equipped with 100,000 GPUs. This move comes after Oracle signed an agreement with Microsoft to provide Nvidia-powered servers for Open AI workloads.

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