Musk’s xAI, Oracle end talks on $10 billion server deal, The Information reports

:Billionaire Elon Musk’s synthetic intelligence startup xAI and tech giant Oracle have ended talks on a doable $10 billion server deal, The Files reported on Tuesday.

The startup and Oracle have ended talks to enlarge an present association below which xAI has been renting Nvidia’s AI chips from the cloud provider, the parable said, citing several individuals desirous about the talks.

The AI startup is building a design the usage of Nvidia’s H100 graphics processing objects by itself, Musk said in a post on his social media platform X.

A multi-yr agreement to rent Nvidia processors from Oracle for a deliberate supercomputer was underway, nonetheless talks had been held back by components similar to Musk’s demands to create a supercomputer sooner than Oracle deemed doable, The Files said.

Oracle also raised issues that xAI’s most stylish space had inadequate vitality provide, the parable added.

Oracle and representatives for Elon Musk didn’t straight answer to Reuters’ requests for comment.