Oracle and Elon Musk’s xAI have ended negotiations over a $10 billion server deal. The talks to expand the current agreement between xAI and Oracle have come to a standstill, as xAI has been leasing Nvidia processors from the cloud provider. Musk announced on his social media platform that xAI is developing a system using Nvidia’s H100 graphics processing units, aiming for the fastest completion time. However, another customer has a contract for the exact capacity that Oracle was negotiating for with xAI. Talks were in place for xAI to lease Nvidia processors from Oracle for a multi-year supercomputer, but negotiations faced obstacles, including Musk’s desire to build a faster supercomputer than Oracle believed possible. Oracle also expressed concerns about the power supply at xAI’s planned location. Regardless, xAI already has a contract in place to train AI models on Oracle’s Gen2 Cloud.
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