Musk’s xAI Buys Memphis Property for Expansion

Elon Musk’s artificial intelligence company, xAI, has purchased a 1-million-square-foot property in Southwest Memphis, Tennessee, according to the Greater Memphis Chamber on Friday. The acquisition marks a significant step in xAI’s efforts to expand its AI infrastructure amid growing competition in the tech industry.

The investment builds on xAI’s December announcement outlining plans to expand its Colossus supercomputer, aiming to house over one million graphics processing units (GPUs) within the state.

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Colossus is central to Musk’s AI ambitions, as the billionaire seeks to outpace rivals like OpenAI. Recent tensions between Musk and OpenAI’s CEO, Sam Altman, have highlighted Musk’s determination to dominate the field.

The Memphis Chamber noted that the Colossus supercomputer is progressing toward ”supercluster size,” as detailed in xAI’s earlier statement.

However, the expansion has faced criticism from environmental activists, who argue that data centres consume vast amounts of energy.

To address these concerns, the new Memphis facility will include an $80 million water recycling plant and the largest global deployment of Tesla Megapacks for data center operations.

Additionally, reports on Wednesday revealed that Tesla plans to construct a 1-million-square-foot factory in Texas to manage and store its Megapack energy products.

The acquisition underscores Musk’s strategic push to strengthen xAI’s competitive position in the rapidly evolving artificial intelligence landscape.

Reuters