(Reuters) -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 negotiations to expand an existing agreement under which xAI leased Nvidia’s AI chips from the cloud provider, the report said, citing several people involved in the negotiations.
The AI startup is building a system using Nvidia’s H100 graphics processing units, Musk said in a post on his X social media platform.
A multiyear deal to lease Nvidia processors from Oracle for a planned supercomputer was in the works, but negotiations were delayed by issues including Musk’s demands to build a supercomputer faster than Oracle thought possible, The Information said.
Oracle also raised concerns that xAI’s preferred location had inadequate power supply, the report added.
Oracle and representatives for Elon Musk did not immediately respond to Reuters’ requests for comment.
(Reporting by Arsheeya Bajwa in Bengaluru; Editing by Anil D’Silva)
