Musk's xAI, Oracle end talks on $10 bln server deal, the Information reports
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Billionaire Elon Musk's artificial intelligence startup xAI and tech giant Oracle have ended talks on a potential $10 billion server deal, the Information reported on Tuesday.

The startup and Oracle have ended talks to expand an existing arrangement under which xAI has been renting Nvidia's AI chips from the cloud provider, the report, said, citing several people involved in the talks.

Musk's xAI is building a system using Nvidia's H100 graphics processing units by itself "for fastest time to completion", the billionaire said in a post on his social media platform X.

The specific capacity that Oracle was talking about with xAI has been contracted to another customer, a source familiar with the matter told Reuters. "The company is always in discussion with customers about upcoming capacity and continues to engage with xAI on its infrastructure needs," the source said.
 

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 xAI and tech giant Oracle have ended talks on a potential $10 billion server deal. The discussions were aimed at expanding an existing arrangement in which xAI rented AI chips from Oracle's cloud provider, Nvidia. However, the talks were halted due to various issues, including Musk's demands to build a supercomputer faster than what Oracle deemed possible.