Musk’s xAI plans major supercomputer expansion in Memphis

Memphis becomes a key site for Musk’s AI ambitions with the Colossus expansion project.

Musk's xAI is expanding its Memphis supercomputer to one million GPUs to rival OpenAI.

Elon Musk’s AI company, xAI, is preparing to expand its Memphis-based supercomputer, Colossus, to accommodate over one million graphics processing units (GPUs). Currently housing 100,000 GPUs, Colossus plays a central role in training xAI’s chatbot, Grok, as the company accelerates efforts to rival OpenAI in the AI landscape.

Nvidia will supply the GPUs, while Dell and Super Micro are tasked with assembling the server infrastructure in Memphis, according to the Greater Memphis Chamber. The expansion highlights xAI’s commitment to AI innovation, as Musk intensifies competition with OpenAI and its CEO, Sam Altman. Recently, Musk escalated his legal battle with OpenAI, alleging monopolistic practices in the AI sector.

Concerns about environmental impact loom large with the supercomputer’s planned growth. Colossus’s massive energy demands have drawn scrutiny from environmental groups. The Southern Environmental Law Center urged Tennessee authorities to investigate whether xAI was using unpermitted gas turbines to power the facility.

The Memphis project underscores Musk’s ambitions to reshape the AI industry. With Colossus’s tenfold expansion, xAI positions itself as a formidable challenger in the rapidly evolving AI arms race.