xAI, Elon Musk’s AI firm, has acquired a 1 million-square-foot property in Southwest Memphis to develop 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 current 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 an announcement.
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 keeping with reports, the startup not too long ago constructed a second knowledge heart in Atlanta with $700 million value of chips and different gear. It additionally inked a cope with Dell to purchase $5 billion value 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, known 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 can pressure the grid and worsen the world’s air high quality. To aim to win them over, xAI has offered 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 may worth the corporate at $75 billion. xAI closed its final funding spherical, which topped out at $6 billion, in late 2024.