(Reuters) -Billionaire Elon Musk’s artificial intelligence startup xAI and tech giant Oracle (NYSE:) have ended talks on a potential $10 billion server deal, The Information reported on Tuesday.
The startup and Oracle have ended talks to expand an existing arrangement under which xAI rents Nvidia (NASDAQ:)’s AI chips from the cloud provider, the report said, citing several people involved in the talks.
Musk’s xAI is now buying chips to build a data center on its own instead, according to the report.
A multi-year agreement to rent Nvidia processors from Oracle for a planned supercomputer was underway, but talks were held back by issues such as Musk demands to build a supercomputer faster than Oracle deemed possible, The Information said.
Oracle and representatives for Elon Musk did not immediately respond to Reuters’ requests for comment.
