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The
startup and Oracle have ended talks to expand an existing
arrangement under which xAI has been renting Nvidia's AI chips
from the cloud provider, the report said, citing several people
involved in the talks.
Musk's xAI is building a system using Nvidia's H100 graphics
processing units by itself "for fastest time to completion", the
billionaire said in a post on his social media platform X.
The specific capacity that Oracle was talking about with xAI has
been contracted to another customer, a source familiar with the
matter told Reuters.
"The company is always in discussion with customers about
upcoming capacity and continues to engage with xAI on its
infrastructure needs," the source said.
A multi-year agreement to rent Nvidia processors from Oracle for
a planned supercomputer was underway, but talks were held back
by issues such as Musk's demands to build a supercomputer faster
than Oracle deemed possible, the Information said.
Oracle also raised concerns that xAI's preferred location had
inadequate power supply, the report added.
xAI already has a contract to train AI models in Oracle's Gen2
Cloud.
(Reporting by Arsheeya Bajwa and Jaspreet Singh in Bengaluru;
Additional reporting by Harshita Mary Varghese; Editing by Anil
D'Silva and Maju Samuel)
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