Elon Musk, CEO of Tesla, is expanding the data center scale of his artificial intelligence (AI) startup xAI.
According to the Memphis Chamber of Commerce in Tennessee on the 8th, xAI recently purchased a 1 million square meter site in southwest Memphis to expand its AI data center infrastructure.
This new site is reportedly intended to supplement the infrastructure of xAI's existing data center in Memphis.
xAI is already constructing the world's largest data center, 'Colossus', on a site of 522 acres (approximately 2.11 million square meters) located in Memphis.
xAI has been training and operating its AI model group 'Grok' through its data center. This new purchase will be added to the existing site to facilitate the expansion of the data center.
Brent Mayo, senior site manager at xAI, noted, 'The acquisition of the site will ensure we remain at the forefront of AI innovation.'
xAI is actively securing AI hardware. The company has built a second data center in Atlanta equipped with chips and other equipment worth $700 million (approximately 1 trillion won). Additionally, it has signed a $5 billion (approximately 7.2 trillion won) contract for GPU server purchases with Dell.
The company also plans to upgrade the number of graphic processing units (GPUs) installed in the major facility 'Colossus' in Memphis from 100,000 to around 1 million by the end of the year.
xAI is reportedly discussing attracting investments totaling $10 billion (approximately 14.5 trillion won) to fund its AI infrastructure projects. If successful, the company’s value will reach $75 billion (approximately 108 trillion won).
xAI has also completed raising $6 billion in investments by the end of 2024.