Billionaire Elon Musk's artificial intelligence startup xAI and tech giant Oracle have completed negotiations on a potential $10 billion server deal.
The startup and Oracle have ended talks to expand an existing arrangement in which xAI leases Nvidia's AI chips from the cloud provider, the report said.
In a post on social media platform Musk X, the artificial intelligence startup has built a system using Nvidia's H100 graphics processing units.
The report said a multi-year deal to lease Nvidia processors from Oracle for the planned supercomputer was in place, but talks were stalled over issues such as Musk's demands to build a supercomputer faster than Oracle thought possible.
Oracle is concerned that xAI's preferred location does not have sufficient power supply.
