Elon Musk's xAI Buys Third Building to Expand AI Compute Power

xAI is planning to expand its supercomputer Colossus to house at least 1 million graphics processing units.

Advertisement
By Reuters | Updated: 31 December 2025 14:25 IST
Highlights
  • xAI aims to boost training capacity to 2 gigawatts of compute power
  • Expansion of AI infrastructure has drawn criticism from activists
  • xAI's supercomputer cluster, Colossus, is the largest in the world

"xAI has bought a third building called MACROHARDRR," Musk wrote on X

Photo Credit: Reuters

Elon Musk said on Tuesday his artificial intelligence startup xAI has bought a third building to expand its infrastructure, aiming to boost training capacity to nearly 2 gigawatts of compute power.

The latest expansion underscores xAI's ambitious push to compete more effectively with industry leaders OpenAI's ChatGPT and Anthropic's Claude by training increasingly advanced models. The company's supercomputer cluster in Memphis, Tennessee, known as Colossus, is touted as the largest in the world.

"xAI has bought a third building called MACROHARDRR," Musk wrote on X, without disclosing its location. The term is potentially a play on Microsoft's name.

Advertisement

The Information, which reported the development earlier in the day citing property records and a person familiar with the project, said the building for a third supersized data center is planned outside Memphis.

Advertisement

xAI is planning to expand its supercomputer Colossus to house at least 1 million graphics processing units.

The startup is planning to start turning the newly purchased warehouse into a data center in 2026, the Information reported, adding that both the new data center and Colossus 2 are close to a natural gas power plant that xAI is building in the area, as well as other power sources.

Advertisement

The expansion of AI infrastructure, however, has drawn criticism from environmental activists as data centers consume large amounts of energy.

xAI did not immediately respond to a Reuters request for comment.

Advertisement

© Thomson Reuters 2025

 

Catch the latest from the Consumer Electronics Show on Gadgets 360, at our CES 2026 hub.

Further reading: xAI, Elon Musk, AI
Advertisement

Related Stories

Popular Mobile Brands
  1. Oppo Reno 15 Pro Max, Reno 15 Pro Launched Globally Alongside Reno 15
  2. Here's How Much the Realme 16 Pro Series Could Cost in India
  3. Beauty (2025) OTT Release Date: When and Where to Watch it Online?
  4. Cyberpunk 2 Said to Launch in Q4 2030 With a Budget of $416 Million
  5. Japan's H3 Rocket Suffers Setback as Michibiki 5 Navigation Satellite Launch Fails
  6. These Three Xiaomi 17 Series Phones Could Launch in India in Q1 2026
  7. Vivo V70 Visits IMDA Database; Could Launch Soon With These Features
  8. Hearing Static Noise on Your iPhone 17 Pro Max? You're Not Alone
  9. TCL Note A1 Nxtpaper E-Note Launched at This Price to Rival Kindle Scribe
  10. Apple Could Emerge as a Major AI Powerhouse in 2026: Report
  1. Vivo V70 Presence on IMDA Certification Database Points to Imminent Release
  2. MediaTek Dimensity 7100 Chipset Launched For Mid-Ranged Phones, Brings Efficiency Gains
  3. JWST Reveals Powerful Winds and Dense Atmosphere on Scorching Exoplanet TOI-561b
  4. New Year 2026 Scam Alert: This WhatsApp Greeting Could Wipe Your Bank Account
  5. Apple Fitness+ Teaser Hints at New Features Coming in January 2026
  6. An AI Pen? Jony Ive and OpenAI’s Secret Hardware Project Details Leak
  7. Oppo Reno 15 Pro Max, Reno 15 Pro With Dimensity 8450 SoC Launched Globally, Reno 15 Tags Along: Price, Specifications
  8. Hell’s Paradise Season 2 OTT Release Date Revealed: When and Where to Watch it Online?
  9. Xiaomi 17 Ultra, Xiaomi 17 Tipped to Launch in India in March; Xiaomi 17T Could Follow in April
  10. Beauty (2025) OTT Release Date: When and Where to Watch Ankith Koyya and Nilakhi Patra Starrer Online?
Gadgets 360 is available in
Download Our Apps
Available in Hindi
© Copyright Red Pixels Ventures Limited 2025. All rights reserved.