Elon Musk's xAI is making a significant push to ramp up its artificial intelligence capabilities with the acquisition of a third building aimed at expanding its compute capacity.
This move underscores the startup’s ambitions to compete head-to-head with OpenAI’s ChatGPT and Anthropic’s Claude by bolstering its infrastructure and training even more advanced AI models.
Elon Musk shared the news on X (formerly Twitter), announcing that the new building, referred to simply as x, will be used to expand xAI’s Colossus supercomputer a facility already touted as the largest of its kind in the world, based in Memphis, Tennessee.
The Information first reported the acquisition, stating that the new data center is set to be located outside of Memphis and will house at least 1 million GPUs as part of the Colossus 2 upgrade.
The center will be crucial in scaling up the company’s AI training power, bringing it closer to Musk’s vision of advancing the frontier of AI technology.
Scheduled to begin operations in 2026, the new facility will be strategically situated near a natural gas power plant xAI is developing, along with access to other local power sources to meet the massive energy demands of the data center.
However, the expansion has attracted concern from environmental groups, who have raised alarms about the high energy consumption associated with large-scale data centers, often known for their significant carbon footprint.
