Elon Musk’s artificial intelligence company, xAI, has purchased a 1-million-square-foot property in Southwest Memphis, Tennessee, in a move to bolster its AI infrastructure, according to the Greater Memphis Chamber on Friday. The acquisition is a significant step in xAI’s strategy to scale up despite increasing competition in the tech industry.
This investment follows xAI’s announcement in December about plans to expand its Colossus supercomputer, which aims to house over one million graphics processing units (GPUs) in the state. The Colossus supercomputer plays a critical role in Musk’s AI ambitions, positioning the company to compete with rivals like OpenAI. Musk’s determination to lead in the AI space has been evident amid recent tensions with OpenAI CEO Sam Altman.
The Greater Memphis Chamber highlighted that Colossus is moving toward a “supercluster size,” in line with xAI’s previous statements about its expansion plans.
Despite the excitement, the expansion has drawn criticism from environmental activists concerned about the energy consumption of large data centers. To mitigate these concerns, the new Memphis facility will feature an $80 million water recycling plant and the largest global deployment of Tesla Megapacks for energy management in data center operations.
Additionally, reports from Wednesday revealed that Tesla is planning to build a 1-million-square-foot factory in Texas to manage and store its Megapack energy products, furthering Musk’s push to integrate sustainable energy solutions with his tech ventures.
The Memphis acquisition is another key move in Musk’s strategy to position xAI as a leader in the rapidly evolving AI landscape.
