NewsletterReasons Why xAI Oracle Deal Got Cancelled
Elon Musk has been quite active in the AI sector’s improvement as he has founded two AI-development companies, starting with OpenAI, the creators of ChatGPT, and the next xAI. Sam Altman has taken over the OpenAI and has made quite a name for itself. However, xAI has emerged as its biggest competitor. xAI has been using Oracle, the tech giants, and Nvidia AI-equipped H100 graphics processing units (GPUs) to train its AI chatbots.
Disagreements Cut the xAI Oracle Deal.
Oracle has been offering a supercomputer to the Elon Musk company under the $10 Billion xAI Oracle deal to build its AI-training infrastructure, more specifically training its Grok 2.0 AI chatbot. However, the deal was cut short because of the disagreements between the two over the timeline and power supply concerns. In a post, Elon Musk explained how Oracle is a good company, but they are looking for faster alternatives.
Oracle is a great company, and another company shows promise also involved in that OpenAI GB200 cluster, but when our fate depends on being the fastest, by far, we must have our own hands on the steering wheel rather than be a backseat driver.
xAI Building A New Processing System
After finishing the xAI Oracle deal, Elon and the team have planned to build its 100k H100 processing system in Memphis, Tennessee, USA. This will be the fastest among others and will be powered by the Nvidia chips. However, the buying is directly with the Dell and Suprermicro.
xAI contracted for 24k H100s from Oracle and Grok 2 trained on those. Grok 2 is going through finetuning and bug fixes. Probably ready to release next month.
xAI is building the 100k H100 system itself for fastest time to completion. Aiming to begin training later this month.…
— Elon Musk (@elonmusk) July 9, 2024
Additionally, Musk’s company is now working on Grok 3.0, a spicy AI chatbot. It is supposed to be live by the end of the year. Grok 1.5 is already available to the people, and the Grok 2.0 will be live in August.
However, the xAI’s deal with Oracle over the AI model training stays as it is still renting 16,000 Nvidia chips. On the other side, Oracle has partnered with Microsoft for Nvidia-powered servers to handle the OpenAI workloads.
Continue Reading Robert Kiyosaki Predicts Biggest Crash in Bitcoin and Other Assets; Here’s All
- Breaking: Bitcoin Gains State Adoption as Texas Becomes First U.S. State to Purchase BTC
- Rate Cut Advocate Kevin Hassett Emerges as Trump’s Top Pick For Fed Chair
- Breaking: Crypto Platform Polymarket To Operate As A U.S. Exchange as CFTC Issues Key Order
- SEC Panel to Discuss Regulatory Changes for Tokenized Equities on Dec. 4
- December Fed Rate Cut Odds Surge To 85% Following PPI Release
- Chainlink Price Could Soar to $15 as ETF Listing Nears
- Will Cardano Price Rebound as Hoskinson Hints at a TVL Surge After Midnight Launch?
- Ethereum Price Holds $2,900 Amid Massive ETF Inflows and BlackRock Purchase
- Sui Price Surges 12%: Could This Mark the Start of a Bullish Trend?
- Is Bitcoin Price Set for Major Recovery as December Rate Cut Chances Hit 80.9%?
- Solana Price Jumps as Bitwise ETF Sees Record $39.5M Inflow: Targeting $150 Next?
Why Trust CoinGape
CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights Read more…to our readers. Our journal analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.
Premium Partners
