Elon Musk's artificial intelligence startup xAI and technology company Oracle (NYSE:ORCL) have ended discussions on a potential $10 billion server deal, as reported by The Information on Tuesday.

The talks aimed to expand an existing arrangement where xAI had been leasing Nvidia's AI chips from Oracle.

According to sources close to the negotiations, the breakdown in talks resulted from several issues, including Musk's ambitious timeline to build a supercomputer more rapidly than Oracle considered feasible.

Additionally, concerns were raised about the inadequacy of the power supply at xAI's preferred location for the supercomputer.

Musk, through a post on his social media platform X, stated that xAI is now proceeding to build a system independently using Nvidia’s H100 graphics processing units.

Initially, a multi-year agreement to rent Nvidia processors from Oracle for a supercomputer was in progress but has now stalled.

As of now, Oracle and representatives for Elon Musk have not responded to requests for comments on the matter.