Elon Musk's xAI and Oracle End $10 Billion AI Chip Deal Talks Involving Larry Ellison

Jul 9, 2024, 05:06 PM

Elon Musk's artificial intelligence company, xAI, and Oracle have ended discussions on a potential $10 billion deal to expand their current arrangement for renting Nvidia AI chips. The talks reportedly broke down due to disagreements over timeline and power supply concerns. Instead of partnering with Oracle, xAI is now purchasing Nvidia chips to build its own AI data center in Memphis, Tennessee. Dell is reportedly assisting xAI in this endeavor. Larry Ellison, a friend and backer of Musk, was involved in the initial talks.