(Reuters) -Billionaire Elon Musk's artificial intelligence startup xAI and tech giant Oracle have ended talks on a potential $10 billion server deal, The Information reported on Tuesday.

The startup and Oracle have ended talks to expand an existing arrangement under which xAI rents Nvidia's AI chips from the cloud provider, the report said, citing several people involved in the talks.

Musk's xAI is now buying chips to build a data center on its own instead, according to the report.

A multi-year agreement to rent Nvidia processors from Oracle for a planned supercomputer was underway, but talks were held back by issues such as Musk demands to build a supercomputer faster than Oracle deemed possible, The Information said.

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

(Reporting by Arsheeya Bajwa in Bengaluru; Editing by Anil D'Silva)