top of page

Elon Musk's xAI Edges Closer to $10 Billion Deal with Oracle for AI Server Rental

Elon Musk's xAI is in talks with Oracle to rent cloud servers in a deal worth $10 billion. The agreement would make xAI one of Oracle's largest customers. The negotiations are ongoing, and there is no guarantee of a deal being reached.


xAI Logo
Credit: Reuters

The discussions, as reported by The Information, involve a person familiar with the matter.


If the deal goes through, xAI would become one of Oracle's largest customers, as Musk aims to raise funds for his venture and compete with the AI offerings of OpenAI and Google. However, it should be noted that the negotiations are still ongoing, and there is no guarantee that an agreement will be reached.


Last month, xAI was said to be in talks to raise $3 billion in a funding round, which would have valued the company at $18 billion. This potential deal with Oracle could provide the necessary financial boost for xAI's ambitious plans.


Neither Oracle nor Elon Musk have responded to requests for comment from Reuters regarding the reported discussions.


Interestingly, Oracle's co-founder, Larry Ellison, who describes himself as a close friend of Musk, previously announced that Musk's startup had signed a contract to train AI models using Oracle's Gen2 Cloud. This partnership indicates a pre-existing relationship between the two companies.


Oracle recently released an update to its database technology, specifically designed to enhance its compatibility with AI applications. This move aligns with the company's strategy to make its offerings more useful in the rapidly evolving AI landscape.


According to The Information, xAI is currently the largest H100 customer at Oracle, utilising over 15,000 AI chips. The H100 is a specialised AI chip manufactured by Nvidia, a prominent player in the AI hardware market.

 
  • Elon Musk's xAI is in talks with Oracle to rent cloud servers in a deal worth $10 billion.

  • The agreement would make xAI one of Oracle's largest customers.

  • The negotiations are ongoing, and there is no guarantee of a deal being reached.


Source: REUTERS




bottom of page