Elon Musk Acquires Major Share on Oracle’s Spare Servers

Elon Musk has bought up a large amount of cloud computing company Oracle’s spare server space for his new AI venture, X.AI Corp. The news was first reported by Twitter Daily News on May 30, 2023, citing sources familiar with the deal. The deal, which is estimated to be worth over $50 billion, is one of the largest in the history of cloud computing.

X.AI Corp is Musk’s latest project to create a “maximum truth-seeking” AI chatbot that tries to understand the nature of the universe and is unlikely to harm humans. Musk has previously revealed that he is working on a large language model (LLM) similar to OpenAI’s ChatGPT. The chatbot, dubbed TruthGPT, is based on a large language model similar to OpenAI’s ChatGPT, but with more advanced features and capabilities.

Elon Musk has been investing heavily in AI research and development, hiring talent from DeepMind and buying thousands of GPUs from NVIDIA to train his chatbot. However, he still needed more computing power and storage to handle the massive amount of data required for his ambitious vision.

That’s where Oracle came in. The cloud computing giant, which competes with Amazon Web Services and Microsoft Azure, had some spare server capacity that it was willing to sell to Musk at a discounted price. Oracle has been struggling to keep up with the demand for its cloud services, especially from startups.

X.AI is a company that Musk registered in Nevada earlier this year. It is reportedly working on a large language model (LLM) similar to OpenAI’s ChatGPT, but with a twist: it aims to create a “maximum truth-seeking” AI that tries to understand the nature of the universe and is unlikely to “annihilate humans” as Musk said in an interview with Tucker Carlson.

To train such an AI, X.AI needs a lot of computing power and data. Musk has already bought around 10,000 GPUs from NVIDIA and poached talent from DeepMind, a subsidiary of Alphabet that specializes in AI research. He also has access to Twitter’s internal data, since he acquired the social media platform earlier this year as part of his X Corp. conglomerate.

Oracle is one of the leading providers of cloud hosting and database management services, with clients ranging from small startups to large corporations. However, Oracle has been struggling to compete with the likes of Amazon Web Services (AWS), Microsoft Azure and Google Cloud Platform (GCP) in the fast-growing cloud market. As a result, Oracle has accumulated a lot of unused server capacity that it rents out at a discount to customers who need extra computing power.

One of those customers is apparently Elon Musk, the billionaire entrepreneur and visionary behind Tesla, SpaceX and Neuralink. Musk has recently launched a new company called X.AI Corp, which aims to create a “maximum truth-seeking” AI chatbot that tries to understand the nature of the universe and is unlikely to “annihilate humans” because we are an “interesting part of the universe”.

But how is Musk going to train such a sophisticated AI model that requires massive amounts of computing power and data? The answer lies in his recent purchase of Oracle’s spare server capacity, which he reportedly snapped up earlier this year, leaving many startups scrambling for alternatives.

One of the main reasons why Elon Musk decided to invest in Oracle’s cloud computing services is because he believes that they offer superior performance, security and scalability compared to other providers. He said in an interview that he was impressed by Oracle’s ability to handle complex and data-intensive applications, such as artificial intelligence, machine learning and blockchain. He also praised Oracle’s customer service and support, saying that they were always responsive and helpful.

Why Musk chose Oracle’s cloud computing services is because he has a vision of creating a global network of smart cities powered by Oracle’s technology. He said that he wants to use Oracle’s cloud computing capacity to develop and deploy innovative solutions for urban challenges, such as traffic congestion, pollution, waste management and public safety. He said that he hopes to transform cities into more livable, sustainable and efficient places for people.

Elon’s purchase major chunk of Oracle’s cloud computing capacity is not only a strategic investment, but also a personal passion. He said that he has always been fascinated by technology and its potential to improve the world. He said that he sees Oracle as a partner in his mission to make a positive impact on society and the environment. He said that he is excited to work with Oracle and leverage their cloud computing services to achieve his goals.