Oracle Corp (NYSE:ORCL) shares are diving Tuesday afternoon after Elon Musk’s xAI ended talks with Oracle regarding a potential server deal.
What To Know: According to a report from The Information, confirmed by Musk, Oracle and xAI have stopped discussions regarding a potential expansion of an existing arrangement in which Musk’s AI company would rent specialized NVIDIA Corp (NASDAQ:NVDA) chips from Oracle.
The report, which cites several people involved in the talks, indicates that xAI now plans to buy chips in an effort to build its own data center. Musk confirmed such in a follow-up post on X.
“xAI contracted for 24k H100s from Oracle and Grok 2 trained on those … xAI is building the 100k H100 system itself for fastest time to completion. Aiming to begin training later this month. It will be the most powerful training cluster in the world by a large margin,” ...