Elon Musk Reacts To Sundar Pichai’s $40B AI Bet: ‘Mind-Blowing’ Scale Of Compute Spend

• Musk called the spending spree on AI “mind-blowing,” while responding to an announcement made by Google CEO Sundar Pichai.
• Google is investing in data centers for cloud and AI services, including new facilities in Armstrong and Haskell counties in Texas.
• The company said this also includes 6,200 megawatts of new energy generation and capacity through power purchase agreements with energy developers.

Tesla Inc. (TSLA) co-founder and xAI founder Elon Musk expressed surprise at the quantum and pace of investments being made in the artificial intelligence (AI) sector.

In a post on X on Friday, Musk called the spending spree on AI “mind-blowing,” while responding to an announcement made by Alphabet Inc. (GOOG) (GOOGL) subsidiary Google’s CEO, Sundar Pichai, about a new $40 billion investment in Texas.

“It’s mind-blowing how much money is being spent on AI compute so fast! But still many orders of magnitude to go,” Musk said in the post.

Pichai responded, saying, “Between abundant sand, plenty of sun and space (literally) to put it in, we can do it.”

xAI is not listed publicly at the moment. Retail sentiment on Stocktwits around the company trended in the ‘bullish’ territory at the time of writing.

Alphabet’s Class A shares were up more than 3% in Monday’s pre-market trade. Retail sentiment on Stocktwits around the company trended in the ‘neutral’ territory at the time of writing.

What Is Google Investing In?

Google is investing in data centers for cloud and AI services, including new facilities in Armstrong and Haskell counties, as well as an investment to beef up the electricity grid with a new $30 million Energy Impact Fund to scale and accelerate energy initiatives, the company stated in its announcement.

The company said this also includes 6,200 megawatts of new energy generation and capacity through power purchase agreements with energy developers.

Musk has previously appreciated Google’s AI efforts despite his AI startup, xAI, being a direct rival. In October, when Pichai announced Google’s quantum computing breakthrough, Musk praised it in a post on X, saying, “Congrats. Looks like quantum computing is becoming relevant.”

xAI’s Colossus

On its part, Musk’s xAI has been making strides in its AI efforts. The company’s Colossus supercomputer, located in Memphis, Tennessee, comprises 200,000 graphics processing units (GPUs) with a total memory bandwidth of 194 petabytes per second and storage capacity exceeding one exabyte.

The company has a roadmap for expanding its computing capacity to a million GPUs.

GOOGL stock is up 46% year-to-date and 57% over the past 12 months.

Also See: 401(k) Contribution Limit For 2026: IRS Increases Savings Cap For Next Year

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