Musk's xAI acquires third building, pushing AI compute capacity to a massive 2 gigawatts

Musk purchases third building at Memphis site to expand xAI's training capacity to a monstrous 2 gigawatts -- announcement comes days after Musk vows to have 'more AI compute than everyone else'

Elon Musk has revealed that xAI has purchased a third building in its Memphis, Tennessee, site near the Colossus 2 data center to expand its training capacity. The billionaire said on X that the structure will be named 'MACROHARDRR', an extension of his 'Macrohard' project, wherein Musk intends to build software completely from the ground up by solely using AI agents. This additional purchase will supposedly push xAI's overall training compute capacity to a staggering 2 gigawatts. The new building is just the beginning of the expected expenses, though. After all, xAI still must acquire the GPUs, power sources, and more for the site to be productive. And even though Musk is one of the richest people on earth, he's still working to raise tens of billions of dollars to help fund it, as xAI is burning through over a billion dollars a month, as it races to build the most advanced AI on the planet. Even though Musk is still working on the funding for the project, Nvidia has already reportedly signed a deal to deliver the needed GPUs for the site, helping him reach his goal of acquiring 50 million H100-equivalent GPUs in the next five years. Musk's ultimate goal, though, is to have more AI compute than everyone else combined, challenging Microsoft and other AI titans. Aside from acquiring the chips for the AI data center, the billionaire also needs to find a way to power it. It's already been confirmed that Musk bought an overseas power plant and is shipping it to the U.S. to power Colossus 2. xAI has already set its sights on installing a gas turbine facility, which is set to supply 460MW from natural gas, helping the firm achieve its lofty compute capacity goals. Although xAI is a relatively new entrant to the AI race, it quickly caught up with other, more established players like OpenAI due to the significant resources being poured into the project by Elon Musk. Nvidia CEO Jensen Huang even called his first Colossus project a "superhuman" effort, especially after the facility began operation after just 19 days -- a feat that usually takes four years. But with other players in the AI game also spending billions of dollars on their own projects, it would be interesting (or terrifying, depending on your perspective) to see where all this expenditure will ultimately lead in the future.

Musk's xAI to Expand 'Colossus' Data Center, Information Reports

Elon Musk's xAI is planning an expansion of its massive data center complex in Memphis, and has purchased a third building in the area that will bring the company's artificial intelligence computing capacity to almost 2 gigawatts, the billionaire wrote Tuesday in a post on X. Musk has already built one data center in Memphis, known as Colossus, and is currently constructing a second nearby site dubbed Colossus 2. The new building Musk posted about is in nearby Southaven, Mississippi, and adjoins the Colossus 2 facility, the Information reported earlier Tuesday, citing property records and a person familiar with the project. "xAI has bought a third building called MACROHARDRR," Musk posted Tuesday afternoon. "Will take @xAI training compute to almost 2GW." A gigawatt is enough to provide electricity for about 750,000 US homes. Musk has publicly discussed plans to build the world's largest data center for AI training, and posted earlier this year that Colossus 2 will eventually have 550,000 chips from Nvidia Corp., which would cost tens of billions of dollars. XAI has been fundraising aggressively in 2025 to finance its ambitious projects. The company was in talks to raise $20 billion in debt and equity earlier this year, in part to buy Nvidia processors for Colossus 2, Bloomberg News reported. The company didn't respond to a request for comment on the Information's report.

Musk's xAI buys third building to expand AI compute power

Dec 30 (Reuters) - Elon Musk said on Tuesday his artificial intelligence startup xAI has bought a third building to expand its infrastructure, aiming to boost training capacity to nearly 2 gigawatts of compute power. 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 company's supercomputer cluster in Memphis, Tennessee, known as Colossus, is touted as the largest in the world. "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 (MSFT.O), opens new tab name. The Information, which reported the development earlier in the day citing property records and a person familiar with the project, said the building for a third supersized data center is planned outside Memphis. xAI is planning to expand its supercomputer Colossus to house at least 1 million graphics processing units. The startup is planning to start turning the newly purchased warehouse into a data center in 2026, the Information reported, 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. The expansion of AI infrastructure, however, has drawn criticism from environmental activists as data centers consume large amounts of energy. xAI did not immediately respond to a Reuters request for comment. Reporting by Harshita Mary Varghese in Bengaluru; Editing by Shilpi Majumdar Our Standards: The Thomson Reuters Trust Principles., opens new tab

Elon Musk grows xAI's Colossus supercomputer with third data center

Musk said the newly acquired building is called "MACROHARDRR," a name he mentioned in his X post on Dec. 30 without revealing its exact location. The expansion is aimed at boosting xAI's ability to train larger and more advanced AI models, as the company seeks to compete more directly with established players such as OpenAI and Anthropic. xAI's Memphis-based supercomputer cluster, known as Colossus, has been described by Musk as the largest in the world. According to reports, the third building is a large warehouse planned for an area outside Memphis, near Southaven, Mississippi. This new facility is intended to become an additional data center supporting both the existing Colossus facility and the nearby Colossus 2 site, which is still under construction. The Information reported that xAI plans to begin converting the newly purchased warehouse into a data center in 2026. The scale of the buildout is significant. xAI is planning to expand Colossus to eventually house at least one million graphics processing units, a level of compute capacity that places the project among the most ambitious AI training efforts underway. Musk has previously said that Colossus 2 alone could house around 550,000 Nvidia chips, with total costs running into tens of billions of dollars. Reaching nearly two gigawatts of compute power would make the Colossus complex one of the most energy-intensive AI facilities in the world. According to Musk, such capacity would require electricity comparable to that used by roughly 1.5 million U.S. homes. To meet this demand, xAI is building its own energy infrastructure, including a natural gas power plant near the Colossus sites, along with access to other power sources, as reported by The Information. The heavy energy requirements have drawn scrutiny from environmental groups and residents. An earlier July 2025 investigation by the Tennessee Lookout reported that the Colossus facility was operating 33 methane-powered gas turbines despite holding permits for only 15 at the time. The report said the supercomputer facility is located in a predominantly Black, low-income Memphis community with historically high levels of pollution-related illness.

Elon Musk reveals plan to expand xAI's 'Colossus' data center to 2 gigawatts - SiliconANGLE

Elon Musk reveals plan to expand xAI's 'Colossus' data center to 2 gigawatts Elon Musk's xAI Corp. is looking to expand its sprawling artificial intelligence data center complex in Memphis after purchasing a third building at the site. It'll house thousands of new servers that cater to AI models and bring the site's total computing capacity to almost two gigawatts, Musk (pictured) wrote in a post on X. The facility, known as "Colossus", already houses one massive data center building and there is currently a second one under construction at a nearby site that has been dubbed as "Colossus 2". The third site is said to be adjacent to Colossus 2, located near the town of Southaven, Mississippi, according to property records seen by The Information. Musk founded xAI in 2023 as a rival to OpenAI Group PBC, which he initially co-founded and invested in before falling out with its Chief Executive Officer Sam Altman. He said at the time that xAI aims to build AI systems that are transparent, safe and beneficial to humanity, as opposed to seeking profits like OpenAI does. The company is best known for its generative AI chatbot Grok, which is deeply integrated with the X platform, allowing it to access real-time information. xAI intends to transform the newly-purchased warehouse at Southaven into a data center during the new year. The Information's report added that it's located close to a natural gas power station that the company is also building in the area, and has access to additional power sources. AI data centers like Colossus have come in for a lot of criticism for their extensive power demands. Two gigawatts is enough energy to power about 1.5 million U.S. homes for an entire year, and the new facility will also require vast amounts of water to cool the servers and infrastructure housed inside it. According to The Information, xAI expects to use "millions of gallons of water" per day at the site. However, xAI has taken steps to reduce its environmental footprint. In February it announced a plan to build a new wastewater treatment center near Colossus at a cost of around $80 million. The facility will enable xAI to reuse approximately 13 million gallons of wastewater per day. Musk has said in the past that he envisions Colossus becoming the world's largest data center for AI training. The Colossus 2 facility is expected to house more than 555,000 graphics processing units from Nvidia Corp., which will be bought at the fantastically expensive price of around $18 billion. That sum doesn't include the cost of related equipment, such as the servers and cooling systems they'll require. Like all smart businessmen, Musk isn't paying these expenses out of his own pocket. Rather, xAI has embarked on an aggressive fundraising effort to fuel its ambitions. In July, it announced it had raised $10 billion in capital in the shape of equity funding and loans. Since then, it has held talks with Saudi Arabia's PIF sovereign wealth fund and other investors over a further $20 billion raise that would bring its value to over $170 billion.

Elon Musk's xAI Buys Third Building to Expand AI Compute Power

xAI's supercomputer cluster, Colossus, is the largest in the world Elon Musk said on Tuesday his artificial intelligence startup xAI has bought a third building to expand its infrastructure, aiming to boost training capacity to nearly 2 gigawatts of compute power. 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 company's supercomputer cluster in Memphis, Tennessee, known as Colossus, is touted as the largest in the world. "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. The Information, which reported the development earlier in the day citing property records and a person familiar with the project, said the building for a third supersized data center is planned outside Memphis. xAI is planning to expand its supercomputer Colossus to house at least 1 million graphics processing units. The startup is planning to start turning the newly purchased warehouse into a data center in 2026, the Information reported, 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. The expansion of AI infrastructure, however, has drawn criticism from environmental activists as data centers consume large amounts of energy. xAI did not immediately respond to a Reuters request for comment.

Elon Musk's xAI buys third building to expand AI compute power

Elon Musk said his AI firm xAI has bought a third building, 'MACROHARDRR', to expand computing power for training models. The move supports plans for a huge supercomputer near Memphis that could reach nearly two gigawatts. The startup is planning to start turning the newly purchased warehouse into a data centre in 2026. Elon Musk said on Tuesday his artificial intelligence startup xAI has bought a third building to expand its ⁠infrastructure, aiming to boost training capacity to nearly 2 gigawatts of compute power. 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 company's supercomputer cluster in Memphis, Tennessee, known as Colossus, is touted as the largest in the world. "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. The Information, which reported the development earlier in the day citing property records and a person familiar with the project, said the building for a third supersized data center is planned outside Memphis. xAI is planning to expand its supercomputer Colossus to house at least 1 million graphics processing units. The startup is planning to start turning the newly purchased warehouse into a data centre in 2026, the Information reported, adding that both the new data centre ⁠and Colossus ⁠2 are close to a natural gas power plant that xAI is building in the area, as well as other power sources. The expansion of AI infrastructure, however, has drawn criticism from environmental activists as data centres consume large amounts of energy. xAI did not immediately respond to a Reuters request for comment.

Elon Musk Says xAI Purchased Third Building For Massive AI Expansion As Company Takes On OpenAI, Anthropic: Property Name Takes Dig At Microsoft - Microsoft (NASDAQ:MSFT)

On Tuesday, Elon Musk said his artificial intelligence startup xAI has acquired a third building as it races to dramatically scale computing power and challenge leading AI rivals. xAI Adds Third Facility To Scale AI Infrastructure Musk said that xAI has purchased a third building to expand its AI infrastructure, pushing the company's planned compute capacity toward nearly 2 gigawatts. "xAI has bought a third building called MACROHARDRR," Musk wrote on X, a name widely seen as a tongue-in-cheek reference to Microsoft Corp (NASDAQ:MSFT), a major backer of OpenAI. Musk did not disclose the building's exact location. "Will take @xAI training compute to almost 2GW," he continued. See Also: Bill Gates Was Introduced To LSD By This Person At Microsoft -- It Is None Other Than The Guy Who Also Got Him Drunk And Gave Him Pot The move highlights xAI's aggressive push to train larger and more advanced AI models capable of competing with OpenAI's ChatGPT and Anthropic's Claude. Colossus Supercomputer Set For Massive GPU Expansion The new facility is planned outside Memphis, Tennessee, where xAI operates its flagship supercomputer cluster known as Colossus, reported Reuters (via The Information). The system is already touted as the world's largest AI supercomputer. According to the report, xAI plans to expand Colossus to house at least 1 million graphics processing units, a scale that would place it among the most powerful AI training systems globally. The report added that xAI expects to begin converting the newly acquired warehouse into a data center in 2026. Both the new site and a planned "Colossus 2" facility are located near a natural gas power plant that xAI is building, along with access to other energy sources. Meanwhile, last month, it was reported that xAI is in late-stage discussions to secure $15 billion in fresh equity funding, valuing the company at about $230 billion. According to Benzinga Edge Stock Rankings, MSFT is trending lower in the short and medium term, while its long-term outlook remains positive. Click here for deeper insights into the stock, its peers and competitors. Read Next: This Nvidia-Powered AI Infrastructure Stock Is Now Significantly Underpriced Following Steep Pullback: Value Score Spikes Photo Courtesy: gguy on Shutterstock.com Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors. MSFTMicrosoft Corp$488.900.29%OverviewMarket News and Data brought to you by Benzinga APIs

Elon Musk's xAI buys building near Memphis for third data center By Investing.com

Investing.com -- Elon Musk's artificial intelligence company xAI has purchased a building for its third large-scale data center outside Memphis, Tennessee, as part of its goal to deploy 1 million chips for its AI models, The Information reported on Tuesday. According to property records, an xAI subsidiary acquired an 810,000 square-foot warehouse in Southaven, Mississippi, from an affiliate of BlackRock-owned private equity real estate firm ElmTree Funds earlier this month. Get premium analysis and insights by upgrading to InvestingPro - get 55% off today The newly purchased facility is located directly adjacent to xAI's existing 1 million-square-foot Colossus 2 data center, which sits just across the state line in Memphis. A new road connecting Colossus 2 and the site of the third data center has been constructed in recent weeks. The company reportedly plans to begin converting the warehouse into a data center in 2026. Both the new facility and Colossus 2 are positioned near a natural gas power plant that xAI is constructing in the area, along with other power sources. This expansion demonstrates xAI's commitment to building, operating, and powering its own data centers, even as the company continues to develop revenue strategies for its Grok AI models. Unlike competitors such as OpenAI and Anthropic, which rely more heavily on partnerships with external developers and major cloud providers, xAI has largely pursued an independent approach.

Musk's xAI buys third building to expand AI compute power

Dec 30 (Reuters) - Elon Musk said on Tuesday his artificial intelligence startup xAI has bought a third building to expand its infrastructure, aiming to boost training capacity to nearly 2 gigawatts of compute power. 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 company's supercomputer cluster in Memphis, Tennessee, known as Colossus, is touted as the largest in the world. "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. The Information, which reported the development earlier in the day citing property records and a person familiar with the project, said the building for a third supersized data center is planned outside Memphis. xAI is planning to expand its supercomputer Colossus to house at least 1 million graphics processing units. The startup is planning to start turning the newly purchased warehouse into a data center in 2026, the Information reported, 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. The expansion of AI infrastructure, however, has drawn criticism from environmental activists as data centers consume large amounts of energy. xAI did not immediately respond to a Reuters request for comment. (Reporting by Harshita Mary Varghese in Bengaluru; Editing by Shilpi Majumdar)