NEWS: Elon Musk's xAI and Oracle have ended talks on expanding their server rental agreement.
• Talks broke down due to disagreements over timeline and power supply concerns.
• xAI is now building its own AI data center in Memphis, Tennessee.
• The potential deal was estimated to be worth $10 billion.
• The company is purchasing Nvidia chips from Dell and Supermicro for this project.
• xAI already rents about 16,000 Nvidia chips from Oracle, which will continue for now.
• Elon plans to build a supercomputer with 100,000 Nvidia GPUs for training Grok 3.0.
• Oracle has signed a deal with Microsoft to provide Nvidia-powered servers for OpenAI.
• The Oracle-Microsoft deal involves 100,000 of Nvidia's upcoming GB200 chips.
• This arrangement is estimated to cost about $5 billion over two years.
• The new chip cluster is expected to be ready by Q2 2025 and will be located in Abilene, Texas.
Via theinformation.com/articles/musks…
• Talks broke down due to disagreements over timeline and power supply concerns.
• xAI is now building its own AI data center in Memphis, Tennessee.
• The potential deal was estimated to be worth $10 billion.
• The company is purchasing Nvidia chips from Dell and Supermicro for this project.
• xAI already rents about 16,000 Nvidia chips from Oracle, which will continue for now.
• Elon plans to build a supercomputer with 100,000 Nvidia GPUs for training Grok 3.0.
• Oracle has signed a deal with Microsoft to provide Nvidia-powered servers for OpenAI.
• The Oracle-Microsoft deal involves 100,000 of Nvidia's upcoming GB200 chips.
• This arrangement is estimated to cost about $5 billion over two years.
• The new chip cluster is expected to be ready by Q2 2025 and will be located in Abilene, Texas.
Via theinformation.com/articles/musks…
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