Elon Musk announced that Musk’s xAI has purchased a third building to expand its AI infrastructure. The move aims to increase the startup’s training capacity to nearly 2 gigawatts of compute power.
The expansion highlights Musk’s xAI’s ambition to compete with industry leaders like OpenAI’s ChatGPT and Anthropic’s Claude. The company’s existing supercomputer cluster, Colossus, located in Memphis, Tennessee, is already considered one of the largest in the world.
According to Musk, the third building—referred to as “x”—will support the company’s growing data center needs. Details about its exact location remain undisclosed, though reports suggest it will be near Memphis. The facility is intended to house a massive number of graphics processing units, potentially reaching one million GPUs.
The Information reported that Musk’s xAI plans to convert the newly acquired warehouse into a data center in 2026. Both the new site and Colossus 2 are situated near a natural gas power plant being built by the company, alongside other power sources. This setup will ensure sufficient energy for large-scale AI computations.
While the expansion underscores xAI’s technical ambitions, it has raised environmental concerns. Activists have criticized large data centers for their significant energy consumption. Musk has not publicly addressed these concerns, and xAI did not immediately respond to requests for comment.
This latest infrastructure investment reflects the broader trend of AI startups investing heavily in compute power. Musk’s xAI aims to enhance its ability to train advanced AI models and stay competitive in the rapidly evolving AI industry.
With this third building, xAI continues to strengthen its position in AI development, signaling that the company is serious about scaling its computational resources to meet future demands.
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