Elon Musk announced on Tuesday that his artificial intelligence startup, xAI, has acquired a third building as part of an initiative to significantly scale its computing power in a bid to rival leading AI competitors. The newly purchased facility, referred to as MACROHARDRR, aims to bolster xAI’s infrastructure and drive its planned compute capacity toward nearly 2 gigawatts.
Musk shared the news on X, humorously referencing Microsoft Corp (NASDAQ:MSFT)—a notable supporter of OpenAI. While the precise location of the new building remains undisclosed, Musk indicated that it will enhance xAI’s training compute capabilities significantly. “Will take @xAI training compute to almost 2GW,” he stated.
This strategic move underscores xAI’s determination to develop larger and more sophisticated AI models capable of competing with established systems like OpenAI’s ChatGPT and Anthropic’s Claude. The facility is anticipated to be located near Memphis, Tennessee, complementing xAI’s existing supercomputer cluster, known as Colossus, which is already recognized as the world’s largest AI supercomputer.
As part of its growth plans, xAI intends to expand Colossus to accommodate at least 1 million graphics processing units, positioning it among the most powerful AI training systems in the world. Reports indicate that xAI is looking to start converting the newly acquired warehouse into a data center by 2026, further enhancing its capabilities.
Both the new site and the proposed “Colossus 2” facility will be situated in proximity to a natural gas power plant that xAI is developing, providing access to diverse energy sources crucial for its ambitious computing endeavors. This significant expansion aligns with a landscape increasingly dominated by AI technologies, wherein companies are vying for supremacy in model training and deployment.
In addition to its infrastructure advancements, xAI has been reported to be in late-stage discussions to secure $15 billion in fresh equity funding, valuing the company at approximately $230 billion. This capital influx would facilitate xAI’s rapid scaling efforts and technological ambitions as it seeks to establish itself firmly within the competitive AI sector.
As the landscape of artificial intelligence continues to evolve, Musk’s xAI aims to leverage its growing infrastructure and funding to not only compete with established leaders but also to redefine the capabilities and applications of AI technologies in various domains.
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