Aiming to boost training capacity to nearly 2 gigawatts of compute power, Elon Musk said that his artificial intelligence startup xAI has bought a third building to expand its infrastructure. The latest expansion underscores xAI's ambitious push to compete more effectively with industry leaders OpenAI's ChatGPT and Anthropic's Claude by training increasingly advanced models.
The site acquisition brings xAI’s total planned power capacity close to 2 gigawatts, a scale that places the project among the most energy-intensive AI data centre clusters currently under development.
The company's supercomputer cluster in Memphis, Tennessee, known as Colossus, is touted as the largest in the world. The building for a third supersized data center is reportedly being planned outside Memphis.
"xAI has bought a third building called MACROHARDRR," Musk wrote on X, without disclosing its location. The term is potentially a play on Microsoft's name.
xAI is planning to expand its supercomputer Colossus to house at least 1 million graphics processing units.
According to a news report, the startup is planning to start turning the newly purchased warehouse into a data center in 2026, adding that both the new data center and Colossus 2 are close to a natural gas power plant that xAI is building in the area, as well as other power sources.
However, the expansion of AI infrastructure has drawn criticism from environmental activists as data centers consume large amounts of energy.
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