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Elon Musk’s xAI may Selects Memphis for Supercomputer Gigafactory

xAI
  • Elon Musk-founded xAI aims for supercomputer online by 2025, amidst $6 billion Series B funding round.
  • Memphis selected as site for world’s largest AI supercomputer Gigafactory of Compute, pending approval.

Elon Musk-founded AI company announced on Wednesday that Memphis would serve as host site of their world-largest supercomputer Gigafactory of Compute. This statement from Greater Memphis Chamber confirmed this development.

According to reports by Memphis Business Journal, this multibillion-dollar supercomputer would likely use Nvidia H100 GPUs – one of the most sought-after chips that power AI – and could create hundreds of jobs through AI development projects.

“We had an ideal site, ripe for investment,” Memphis Mayor Paul Young said in the statement. “And we had the power of our people who created new and innovative processes to keep up with the pace required to land this transformational project.”

However, the partnership hasn’t become official just yet: its status will depend on approval by Memphis Shelby County Economic Development Growth Engine, Tennessee Valley Authority and city authorities. But should approval come through, this project could represent one of the greatest investments ever seen by Memphis in history.

Ted Townsend, President & CEO of the Greater Memphis Chamber has noted there is currently no set timeline, although xAI appears to be moving with increasing urgency toward reaching their deadlines. Elon Musk previously told investors in xAI he wants the supercomputer online by fall 2025.

“The focus is, and it will remain, to get this thing operating,” Townsend said.

Townsend noted that Greater Memphis Chamber became involved with this process about 90 days ago – relatively soon given when xAI started looking.

Memphis Business Journal reports that plans call for the company to move into an old manufacturing site that may once housed Electrolux Memphis production; Townsend could not confirm which facility this might be due to security considerations.

Details surfaced just as news about Musk sending Nvidia chips destined for Tesla to SpaceX instead emerged, prompting him to explain that Tesla did not have anywhere suitable to store such high-priced semiconductors and they would otherwise sit unused in warehouses; delaying their receipt may interfere with Tesla’s supercomputer development plans.

Just this past week, xAI announced it raised $6 billion through its Series B funding round – including personal investments by Elon Musk of $750 million and computing power from X of $250 million, according to The Wall Street Journal.

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