Musk's xAI and Oracle Discontinuing $10 Billion Server Agreement

Tuesday, 9 July 2024, 17:12

The talks between the AI startup xAI and Oracle have halted regarding a $10 billion server deal. XAI was renting Nvidia's AI chips from Oracle, but now aims to develop its system using Nvidia's H100 GPUs. Disagreements, including Musk's ambitious timeline for a supercomputer, have led to the progression's suspension.
Yahoo Finance
Musk's xAI and Oracle Discontinuing $10 Billion Server Agreement

Musk's xAI: Oracle Ends Talks on $10 Billion Server Deal

The negotiations between xAI and Oracle have come to a standstill, affecting a planned server collaboration worth $10 billion.

Details of the Discontinued Talks:

  • Existing Arrangement Nullified: Oracle and xAI cease discussions on expanding the existing Nvidia AI chip rental agreement.
  • Development Shift: xAI opts to construct a system using Nvidia's H100 GPUs independently.
  • Obstacles in the Negotiations: Issues arose, including Musk's request to accelerate supercomputer development beyond Oracle's capacity.

This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.


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