Elon Musk's xAI Ends Negotiation with Oracle, Builds Supercomputer with 100,000 Nvidia H100GPUs

TapTechNews July 10th news, on July 9th local time, Elon Musk confirmed that his artificial intelligence startup xAI has ended the negotiation with Oracle to expand the existing agreement and rent Nvidia chips.

He stated that xAI is building a supercomputer with 100,000 Nvidia H100GPUs, which is expected to be delivered and start training later this month.

He pointed out that 'this will become the most powerful training cluster in the world, and the lead is huge', 'our core competitiveness is to be faster than any other artificial intelligence company, which is the only way to narrow the gap'.

Before that, xAI had already rented 24,000 H100 chips (compute power) from Oracle and trained Grok2 with them. He said that Grok2 is currently in the final polishing stage and only needs a little fine-tuning and bug fixes to be released, and it is expected to be released as soon as next month.

Elon Musk's xAI Ends Negotiation with Oracle, Builds Supercomputer with 100,000 Nvidia H100GPUs_0

At the same time, Elon Musk did not forget to praise Oracle. He emphasized that 'Oracle is a great company, and there is another promising company that also participated in OpenAI's GB200 cluster. However, when our destiny depends on whether we can be the fastest company, we must take the steering wheel ourselves, not just sit in the back seat and talk'.

Oracle said last September that the company had reached an agreement to provide cloud infrastructure to xAI to train AI models. Oracle did not disclose the contract value and duration at that time.

In May this year, it was reported that the two companies were close to reaching an agreement to expand the cooperative relationship, and xAI will spend about 10 billion US dollars (TapTechNews note: currently about 72.793 billion yuan) to rent cloud servers from Oracle for several years.