Oracle and Musk-owned xAI close talks on reported $10bn server deal
Plans for Oracle to build Elon Musk a supercomputer have broken down
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Elon Musk’s xAI won’t be renewing its server rental agreement with thecloud storagegiant Oracle, reportedly after the firm deemed Musk’s specification for a supercomputer it was building him technological impossible.
PerReuters, xAI had been rentingNvidiaAI-equipped H100 graphics processing units (GPUs) from Oracle, but, ina tweet on Twitter, Musk said the company was now building its own system to ensure ‘[the] fastest time to completion’.
xAI and Oracle
Reuterswas told by a source close to Oracle that the server capacity it rented out to xAI had already been reassigned to another company.
But this is no secret.xAI’s twitter account(viaThe Information) discussed last month’s news thatOracle have signed an agreement with Microsoftto provide Nvidia-powered servers forOpenAIworkloads.
xAI and Oracle do still have an agreement to allow xAI to train its AI models in Oracle’s cloud infrastructure, and, per that X tweet (we’re not made of money), xAI still rents around 16,000 Nvidia chips from Oracle.
Said tweet also confirms xAI’s plans to build its own data center in Memphis, Tennessee powered by Nvidia chips bought directly fromDelland Supermicro, plus a 100,000 GPU strong supercomputer for the third version of Grok, Twitter’s very own‘spicy’AI chatbot.
Musk plans for the second version of Grok to launch next month.
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Luke Hughes holds the role of Staff Writer at TechRadar Pro, producing news, features and deals content across topics ranging from computing to cloud services, cybersecurity, data privacy and business software.
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