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Elon Musk’s xAI to expand computing capacity to 2 GW

  • BY India News Newsdesk
  • December 31, 2025
  • 0 COMMENTS

New Delhi, Dec 31 (IANS) Tesla and SpaceX CEO Elon Musk’s xAI company has purchased a third building near its existing Memphis sites in the US, that will bring its artificial intelligence (AI) computing capacity to almost 2 gigawatts (GW).

Elon Musk has already built one data centre in Memphis, known as Colossus, and is constructing a second centre nearby dubbed Colossus 2, according to multiple reports.

The newly acquired building is in Southaven, Mississippi, and adjoins the Colossus 2 facility, according to reports citing people familiar with the matter.

“xAI has bought a third building called Macrohardrr,” Musk posted on social media platform X, saying it will “take @xAI training compute to almost 2GW.”

A gigawatt is enough to provide electricity for about 7,50,000 US homes. Musk has publicly discussed plans to build the world’s largest data centre for AI training and previously said Colossus 2 will eventually have 5,50,000 chips from Nvidia, costing tens of billions of dollars.

Moreover, Musk’s xAI Holdings is reportedly in talks to raise new funding at around $230 billion valuation. Musk owns a 53 per cent stake in xAI Holdings, worth $60 billion.

Musk took a dig at Wikipedia in October, claiming Grokipedia, developed by xAI, will surpass the popular online encyclopedia “by several orders of magnitude in breadth, depth and accuracy.”

Grokipedia is an AI-powered encyclopedia that aims to challenge what Musk calls a “woke” and biased Wikipedia.

He described Grokipedia as a “massive improvement over Wikipedia” and said it aligns with xAI’s mission to help humanity better understand the universe.

Musk’s net worth rose to nearly $750 billion after a US court reinstated Tesla stock options worth $139 billion.

According to Forbes’ billionaires index, this development has taken Musk closer to become the world’s first trillionaire.

—IANS

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