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Musk’s xAI plans massive AI expansion in Memphis.

by Tim McBride
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Elon Musk’s AI Startup xAI Plans to Expand Supercomputer to House One Million GPUs

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Elon Musk’s artificial intelligence startup xAI is planning to significantly expand its Memphis, Tennessee-based supercomputer, Colossus, to house at least one million graphics processing units (GPUs). The move is designed to help the company stay competitive against rivals like OpenAI, a major player in the AI market.

Colossus currently has 100,000 GPUs, which are used to train xAI’s chatbot, Grok. The expansion will involve partnerships with companies like Nvidia, Dell, and Super Micro, which will establish operations in Memphis.

The massive expansion of Colossus is critical for xAI’s AI efforts, as it deepens Musk’s rivalry with OpenAI and its CEO Sam Altman. In recent news, Musk has expanded his lawsuit against OpenAI, accusing the company and Microsoft of seeking to monopolize the AI market.

The plan to expand the supercomputer tenfold is likely to raise environmental concerns, as critics have scrutinized the growing number of data centers for their vast energy consumption. In August, the Southern Environmental Law Center called on local Tennessee officials to verify whether xAI was using gas turbines to power its supercomputer without the required air permits.

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