Elon Musk’s xAI nears $10 billion deal to rent Oracle’s AI servers, The Information reports

By Thomson Reuters May 14, 2024 | 11:11 AM

(Reuters) -Elon Musk’s artificial intelligence startup xAI has been talking to Oracle executives about spending $10 billion to rent cloud servers from the company over a period of years, The Information reported on Tuesday, citing a person involved in the talks.

The deal would make xAI one of Oracle’s largest customers, the report said, as Musk looks to raise funds for xAI in an attempt to rival the AI offerings of OpenAI and Google.

XAI was reportedly in talks to raise $3 billion last month in a round, which would have valued the company at $18 billion.

Oracle and Elon Musk did not immediately respond to Reuters requests for comment.

(Reporting by Zaheer Kachwala in Bengaluru; Editing by Shailesh Kuber)