xAI, Elon Musk’s AI firm, has acquired a 1 million-square-foot property in Southwest Memphis to increase its AI knowledge heart footprint, according to a press release from the Memphis Chamber of Commerce.
The brand new land will host infrastructure to enhance xAI’s present Memphis knowledge heart.
“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 a press release.
It wasn’t instantly clear whether or not the growth was associated to a previously announced lease on a 522-acre website in Memphis.
xAI is hungry for AI {hardware}. In accordance with reports, the startup not too long ago constructed a second knowledge heart in Atlanta with $700 million price of chips and different tools. It additionally inked a cope with Dell to purchase $5 billion price of GPU-packed servers.
xAI makes use of its knowledge 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 12 months, up from 100,000 final 12 months.
Some residents have criticized xAI’s continued growth in Memphis, arguing it would pressure the grid and worsen the realm’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 initiatives, xAI is claimed to be discussing a $10 billion spherical of fundraising that might worth the corporate at $75 billion. xAI closed its last funding round, which topped out at $6 billion, in late 2024.
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