March 9: Elon Musk’s artificial intelligence company, xAI, has acquired a 1-million-square-foot property in Southwest Memphis, Tennessee, as part of its strategy to expand AI infrastructure. This move comes as xAI seeks to enhance its computing capabilities amid growing competition in the AI sector.
The purchase aligns with xAI’s previous announcement in December, where the company revealed plans to scale up its Colossus supercomputer to accommodate at least one million GPUs (graphics processing units). The Colossus supercomputer is expected to play a crucial role in Musk’s AI advancements, particularly as he competes with industry leaders like OpenAI. Recent tensions between Musk and OpenAI CEO Sam Altman have further fueled speculation about Musk’s increasing focus on AI development.
According to the Memphis Chamber, the Colossus supercomputer is progressing towards a supercluster-scale system, reinforcing Musk’s ambitions in the field. However, this expansion has also drawn concerns from environmental activists, as large-scale data centers are known for high energy consumption.
To address sustainability issues, xAI’s Memphis facility will be supported by an $80 million water recycling plant and will integrate the largest-ever deployment of Tesla Megapacks for data center operations. Meanwhile, Tesla is also moving forward with its energy initiatives, recently announcing plans for a 1-million-square-foot factory in Texas to manage and store its Megapack energy products.
Sahil Aggarwal (Editor-in-Chief)