Elon Musk’s xAI Goes All-In On Gas Power To Fire Up Nvidia-Powered Data Centers

• Elon Musk has reportedly purchased five new gas turbines for a large-scale data center.
• The turbines would arrive by the end of the year.
• Musk’s xAI is rapidly scaling its mainstay data center campus in Memphis, Tennessee.

Elon Musk’s xAI has acquired five 380MW natural gas turbines to power the company’s upcoming data centers fitted with top-of-the-line Nvidia processors, the executive confirmed on Monday.

Musk replied “True” to an X post from SemiAnalysis, a semiconductor-focused news site. SemiAnalysis’ post said the turbines would arrive by the end of this year and would power a data center with capacity equivalent to 600,000+ GB200 NVL72 clusters.
 

Musk is moving at a brisk pace to scale xAI’s data center capacity, which is essential for its AI services and training the next-gen AI models.

xAI, the umbrella firm for Musk’s AI and social media ventures, is expanding its mainstay data center campus, Colossus, in Memphis, Tennessee. Last year, Musk announced a second site, Colossus 2, in South Memphis, that is being built on a 186-acre land parcel. 

In July, Musk disclosed that “the first batch of 550k GB200s & GB300s” were going live at Colossus 2, while Colossus 1 had 230,00 GPUs, including 32,000 GB200s, up and running.

Musk ultimately wants to reach 2 gigawatts of cloud computing capacity. xAI also has a data center project in Saudi Arabia. Central to the expansion is new funding; xAI is reportedly in talks to raise about $15 billion in debt and equity from investors, mainly to expand its AI infrastructure.

With Grok, Musk has entered the AI race, taking on rivals such as OpenAI and Google. Last year, he sued OpenAI and Apple, accusing them of anti-competitive practices over the prominent placement of ChatGPT on Apple’s App Store.

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