Elon Musk's xAI Hires Former Trump Aide Katie Miller Amid Memphis Data Center Controversy

2 Sources

Katie Miller, former Trump administration official, joins Elon Musk's xAI as communications manager. The move coincides with xAI's controversial permit approval for gas turbines at its Memphis data center, sparking environmental concerns.

Former Trump Aide Joins Elon Musk's xAI

In a surprising move, Katie Miller, a former Trump administration official, has joined Elon Musk's artificial intelligence company xAI as a communications manager. This transition comes at a crucial time for xAI, as the company recently secured a controversial permit for its Memphis data center operations 12.

Source: Economic Times

Source: Economic Times

Controversial Permit Approval

The Shelby County Health Department approved xAI's application to operate 15 natural gas-burning turbines at its Colossus supercomputer facility in Memphis. This decision came despite months of community protests over air quality concerns. The permit includes emissions limits and testing requirements, with potential penalties of up to $10,000 per day for non-compliance 2.

Katie Miller, in her new role, announced the permit approval in a rare email to reporters. She stated, "xAI welcomes today's decision by the Shelby County Health Department. Our onsite power generation will be equipped with state-of-the-art emissions control technology, making this facility the lowest emitting of its kind in the country" 2.

xAI's Strategic Moves

Source: Benzinga

Source: Benzinga

The Memphis facility is a critical component of xAI's infrastructure, powering the company's Grok AI model. This positions xAI as a direct challenger to established AI platforms like OpenAI's ChatGPT and Google's Gemini 2. The company has recently raised $10 billion in debt and equity, with discussions underway for an additional $20 billion equity round that could value xAI at over $120 billion 2.

Technological Specifications

The Memphis supercomputer utilizes primarily NVIDIA GPUs, with additional chips from Advanced Micro Devices. Elon Musk plans to deploy 1 million GPUs at the facility, with acquisition costs estimated between $30 billion and $40 billion, according to analyst Gene Munster 2.

Political Implications

Katie Miller's hiring comes amid growing tensions between Donald Trump and Elon Musk. Miller departed the White House in May to work full-time for Musk's ventures, while her husband, Stephen Miller, remains with the Trump administration 12. This move has raised eyebrows, given the deteriorating relationship between Trump and Musk, with the latter recently threatening to fund a rival political party 2.

Environmental Concerns and xAI's Response

In response to local pollution concerns, xAI has been proactive in addressing environmental issues. Katie Miller shared information about pollution checks conducted at the Memphis site and included a statement from xAI emphasizing their commitment to environmental responsibility 1. The company claims that its new power system will incorporate top-level emissions control technology, aiming to make it the cleanest data center of its kind in the United States 1.

As xAI continues to expand its operations and challenge established players in the AI industry, the appointment of Katie Miller and the controversial Memphis data center permit highlight the complex interplay between technology, politics, and environmental concerns in the rapidly evolving field of artificial intelligence.

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