Elon Musk Confirms xAI Is Near 2GW Of Training Power After Buying Third ‘Macrohardrr’ Facility

• The added site expands xAI’s growing data center footprint tied to its Colossus AI infrastructure build-out.
• The scale-up comes alongside aggressive fundraising aimed at financing large Nvidia-based compute deployments.
• The expansion adds momentum as xAI ramps prepares broader Grok deployments in 2026.

Elon Musk confirmed that xAI has acquired a third facility, a building referred to as "Macrohardrr," adding to its rapidly expanding AI infrastructure footprint.

In a post on X, Musk said the additional building would take xAI’s training compute capacity to nearly 2 gigawatts.

Expanding The Colossus Complex

The confirmation follows reports that xAI is expanding its massive data center presence in the Memphis region. The company has already built one data center in the city, known as Colossus, and is constructing a second nearby site dubbed Colossus 2.

According to earlier reporting by The Information, xAI also purchased a large warehouse in Southaven, Mississippi, where it plans to develop an adjoining facility tied to its Memphis operations. The expansion reflects Musk’s ambition to build what he has described as the world’s largest data center dedicated to AI training.

Musk has previously said Colossus 2 could eventually house about 550,000 chips from Nvidia, a build-out that would require tens of billions of dollars in investment.

Heavy Fundraising 

xAI has been raising capital aggressively in 2025 to finance its infrastructure push. In October, the company was reportedly in talks earlier this year to raise around $20 billion in a mix of debt and equity, in part to fund purchases of Nvidia processors for Colossus 2.

In November, The Wall Street Journal reported that xAI is in advanced discussions to raise about $15 billion in equity funding at a potential valuation of roughly $230 billion, a sharp increase from the $113 billion valuation disclosed in March, when xAI absorbed the social media platform X. 

Government Contracts Add To Momentum

Last week, the U.S. Department of War announced an agreement to deploy xAI’s systems on its GenAI.mil platform, with initial deployment targeted for early 2026. Under the deal, xAI’s Grok models will be embedded into the platform at Impact Level 5, enabling use with controlled unclassified information.

That agreement followed xAI’s launch of xAI For Government in July, a suite of AI products aimed at federal, state, local, and national security customers. xAI also secured a $200 million contract from the Department of War in July, alongside similar awards to OpenAI, Google, and Anthropic, as part of an effort to scale advanced AI adoption across defense operations.

On Stocktwits, retail sentiment for XAI was ‘bearish’ amid ‘extremely low’ message volume.

For updates and corrections, email newsroom[at]stocktwits[dot]com.

Share

·

Add us on