Science & Technology

Oracle and xAI Reportedly End Talks on $10 Billion Server Deal

Media reports that billionaire Elon Musk’s startup xAI, which operates in the artificial intelligence industry, and technology giant Oracle have completed negotiations on a potential server deal worth $10 billion.

Oracle and xAI Reportedly End Talks on $10 Billion Server Deal

Journalists, referring to insiders, say that negotiations on expanding the existing agreement have ended. The mentioned agreement stipulates that Elon Musk’s startup rents Nvidia artificial intelligence chips from the cloud provider.

Insiders who took part in the relevant process told journalists about the completion of the negotiations.

Elon Musk published a post on his account on the social network X, in which he stated that his startup is independently building a system using Nvidia H100 GPUs.

A multi-year processor rent agreement was signed between the startup the mentioned billionaire and Oracle. In this case, the processors were provided by Oracle. The goal was to develop a supercomputer. Insiders claim that negotiations were suspended due to Elon Musk’s demands to build the supercomputer faster. The disagreements were formed against the background of the fact that Oracle reckons that accelerating the mentioned process to such a pace as the billionaire spoke about is not possible. Oracle also expressed concern that XAI’s preferred location had an inadequate power supply. This was also told by insiders.

The answer to the question of whether the parties will eventually be able to agree will become known over time. It is possible that these differences will not be resolved in the end.

It is worth noting that against the background of the active development of the artificial intelligence industry, in which Elon Musk’s startup is involved, the issue of cybersecurity is being updated. Scammers also have access to AI. In this case, the personal awareness of users is of particular importance. For example, a query in an Internet search system, such as how to know if my camera is hacked, will allow anyone to get information about signs of unauthorized access to the device.

Serhii Mikhailov

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Serhii’s track record of study and work spans six years at the Faculty of Philology and eight years in the media, during which he has developed a deep understanding of various aspects of the industry and honed his writing skills; his areas of expertise include fintech, payments, cryptocurrency, and financial services, and he is constantly keeping a close eye on the latest developments and innovations in these fields, as he believes that they will have a significant impact on the future direction of the economy as a whole.