Musk's xAI spends $400 million to build a supercomputing center in Memphis, but faces power shortages

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PANews
04-02
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PANews reports on April 2nd that, according to Business Insider, Elon Musk's AI company xAI is constructing a supercomputing center called "Colossus" in Memphis, Tennessee. Currently, approximately $406 million has been invested, with future plans to expand to 1 million GPU deployments. However, due to grid capacity limitations, only 150 megawatts of power have been approved, which is far below the demand. xAI has activated natural gas power generation to supplement 250 megawatts and is seeking new sites for additional capacity. The project may ultimately cost over $27 billion, signaling that Memphis could become a global AI computing hub.

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