According to BlockBeats, Elon Musk's artificial intelligence startup, xAI, has announced plans to purchase chips from Nvidia instead of leasing them from Oracle. This move will enable xAI to establish its artificial intelligence data center more rapidly.
Musk revealed on X (formerly Twitter) that xAI intends to use 100,000 Nvidia H100 chips to build its system. The data center will be located in Memphis, Tennessee. Previously, The Information reported that xAI was in discussions for a potential deal worth up to $10 billion to lease chips from Oracle. Under the current agreement, xAI is leasing 24,000 chips from Oracle.
This strategic shift to purchase chips directly from Nvidia is expected to accelerate the development of xAI's artificial intelligence capabilities. However, the financial details of the deal with Nvidia have not been disclosed.