Elon Musk’s xAI Acquires Massive Memphis Facility to Expand AI Supercomputer

The 1-million-square-foot property will support the Colossus supercomputer's growth to one million GPUs, advancing xAI’s rivalry with OpenAI.

xAI purchased a 1-million-square-foot property in Southwest Memphis to expand its Colossus supercomputer and AI infrastructure.
The Colossus supercomputer aims to scale up to one million GPUs this year, a significant step in xAI’s competitive push against OpenAI.
The Memphis facility features the largest deployment of Tesla Megapacks and an $80 million water recycling plant to address environmental concerns.
Tesla is also constructing a 1-million-square-foot Texas factory to support energy storage for AI operations, aligning with Musk's integrated energy and AI strategy.
xAI is reportedly seeking $10 billion in funding to support its infrastructure projects, with the company’s valuation projected at $75 billion.