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Elon Musk Gambles Billions in Memphis to Catch Up on AI

For Elon Musk, ground zero of the artificial intelligence arms race is a 114-acre tract of grass and swamp on the state line of Tennessee and Mississippi. This once-sleepy plot of land, filled with groves of water-rooted tupelo trees at its western edge, is now part of a growing empire Musk is accumulating in the Deep South, just a few miles from Elvis Presley’s homestead at Graceland. Labor crews hired by Musk’s xAI were excavating power equipment on the site—a defunct energy plant just over the state line in Mississippi—and preparing to build a new plant capable of generating over a gigawatt of electricity, enough to power around 800,000 homes. Engineering permits show that Musk plans to route transmission lines that will connect the new power plant to a million-square-foot data center that is also under development just north of the border, in Tennessee. Memphis is the front line of Musk’s costly foray into the AI wars. His artificial intelligence company, xAI, has already built one massive data center here in the Bluff City that it calls the world’s largest supercomputer.

Full feature : xAI is set to spend $18 billion + to acquire ~300,000 more Nvidia chips for its Colossus 2 project in Memphis; in July, Elon Musk said it would total 550,000 chips.