Musk’s xAI to Buy 100,000 Nvidia Chips for AI Center

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Elon Musk has announced that his company, xAI, will purchase chips from Nvidia instead of renting them from Oracle, aiming to expedite the construction of an artificial intelligence data center. In a post on the social media platform X, Musk confirmed that xAI plans to acquire 100,000 Nvidia H100 chips, as initially reported by The Information. The planned data center will be located in Memphis, Tennessee.

Musk’s statement comes in the wake of earlier discussions detailed in The Information, which revealed xAI’s consideration of a potential $10 billion deal to rent chips from Oracle. As it stands, xAI has an existing arrangement under which it rents 24,000 chips from Oracle. Despite this, Musk emphasized the importance of xAI having direct control over its technology.

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“Oracle is a great company, and there is another promising company involved in the OpenAI GB200 cluster. However, when success hinges on being the absolute fastest, we need to be in the driver’s seat, not merely passengers,” Musk stated on X.