Elon Musk’s AI firm, xAI, acquires one-million-square-foot property in Memphis

xAI, Elon Musk’s AI firm, has acquired a one-million-square-foot property in Southwest Memphis to develop its AI information middle footprint, in line with a press launch from the Memphis Chamber of Commerce.

The brand new land will host infrastructure to enhance xAI’s current Memphis information middle.

“xAI’s acquisition of this property ensures we’ll stay on the forefront of AI innovation, proper right here in Memphis,” xAI senior website supervisor Brent Mayo stated in an announcement.

It wasn’t instantly clear whether or not the enlargement was associated to a beforehand introduced new 522-acre lease in Memphis.

xAI is hungry for AI {hardware}. Based on studies, the startup not too long ago constructed a second information middle in Atlanta with $700 million in chips and different gear. It additionally inked a take care of Dell to purchase $5 billion price of GPU-packing servers.

xAI makes use of its information facilities to coach and run its household of AI fashions, Grok. The corporate plans to improve its major Memphis-based facility, referred to as Colossus, to 1 million Nvidia GPUs someday this yr, up from 100,000 as of final yr.

Some residents have criticized xAI’s continued enlargement in Memphis, arguing it’ll pressure the grid and worsen the world’s air high quality. To try to win them over, xAI has supplied the native utility with discounted Tesla-manufactured batteries and constructed a water recycling plant.

Partly to fund its AI infrastructure tasks, xAI is claimed to be discussing a $10 billion spherical of fundraising that will worth the corporate at $75 billion. xAI closed its final funding spherical, which topped out at $6 billion, in late 2024.