Subj : Oracle and Musk-owned xAI close talks on reported $10bn server de
To   : All
From : TechnologyDaily
Date : Wed Jul 10 2024 11:00:06

Oracle and Musk-owned xAI close talks on reported $10bn server deal

Date:
Wed, 10 Jul 2024 09:58:42 +0000

Description:
xAI is now planning its own data center in Tennessee, and expects the second 
version of its Grok AI to release next month.

FULL STORY
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Elon Musks xAI wont be renewing its server rental agreement with the cloud 
storage giant Oracle, reportedly after the firm deemed Musks specification 
for a supercomputer it was building him technological impossible. 

Per Reuters , xAI had been renting Nvidia AI-equipped H100 graphics 
processing units (GPUs) from Oracle, but, in a tweet on Twitter , Musk said 
the company was now building its own system to ensure [the] fastest time to 
completion. xAI and Oracle 

 Reuters was told by a source close to Oracle that the server capacity it 
rented out to xAI had already been reassigned to another company. 

But this is no secret. xAIs twitter account (via The Information ) discussed 
last month's news that Oracle have signed an agreement with Microsoft to 
provide Nvidia-powered servers for OpenAI workloads. 

xAI and Oracle do still have an agreement to allow xAI to train its AI models 
in Oracles cloud infrastructure, and, per that X tweet (were not made of 
money), xAI still rents around 16,000 Nvidia chips from Oracle. 

Said tweet also confirms xAIs plans to build its own data center in Memphis, 
Tennessee powered by Nvidia chips bought directly from Dell and Supermicro, 
plus a 100,000 GPU strong supercomputer for the third version of Grok, 
Twitters very own spicy AI chatbot . 

Musk plans for the second version of Grok to launch next month. More from 
TechRadar Pro Elon Musk's Grok AI has now been open sourced, code available 
on GitHub Elon Musk brings controversial AI chatbot Grok to more X users in 
bid to halt exodus Oracle confirms Microsoft is using its cloud 
infrastructure to support OpenAI



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Link to news story:
https://www.techradar.com/pro/oracle-and-musk-owned-xai-close-talks-on-reporte
d-dollar10bn-server-deal


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