TapTechNews reported on May 15th that, according to sources cited by TheInformation, xAI, an artificial intelligence startup under Musk, has been negotiating with Oracle executives, planning to spend $10 billion to lease cloud servers from Oracle in the next few years.
The proposed $10 billion (Note by TapTechNews: approximately 72.4 billion RMB) transaction size rivals the OpenAI and Anthropic server transaction orders. If all goes well, this transaction will make xAI one of Oracle's largest customers.
Founded in July 2023, xAI launched its first product, Grok chatbot, in November last year. Recently, xAI showcased the Grok-1.5Vision multimodal model, which can process not only text but also images, documents, and table content.
It is worth mentioning that there was news a few days ago that xAI is expected to complete this round of financing this week with a valuation of approximately $18 billion (Note by TapTechNews: approximately 130.14 billion RMB), with Sequoia being one of the potential investors.
The new round of financing will help xAI obtain more AI computing resources to compete with competitors such as OpenAI and Anthropic: Musk recently stated that the next generation Grok model of xAI is being trained on 20,000 NVIDIA H100s, and the future Grok3 will require up to 100,000 AI GPUs for training.