close
close

Elon Musk plans to build his largest supercomputer, called Gigafactory or Compute for AI

Elon Musk is now building a supercomputer, which he claims is the largest in the world, and this megamachine will likely be built in Memphis, Tennessee. Musk’s ambitious project, called the Gigafactory of Compute, will be the most significant investment in the city’s history and promises to create hundreds of jobs and boost Memphis’ technology profile.

This new supercomputer will be powered by Nvidia’s H100 GPUs, one of the most sought-after chips for artificial intelligence applications. According to a statement from the Greater Memphis Chamber, xAI has been working with local officials since March to make this vision a reality. If approved, the project aims to go online in fall 2025.

In a statement to Business Insider, Ted Townsend, president and CEO of the Greater Memphis Chamber, emphasized that while the timeline is not specific, work on xAI is progressing “very aggressively” to meet deadlines. It is notable that Musk previously told xAI investors that he wants the supercomputer to go online in the fall of 2025.

The proposed supercomputer is a multi-billion dollar investment and is expected to create hundreds of jobs and attract significant investment, in line with Musk’s plans to advance AI technology and maintain competitiveness against tech giants such as OpenAI, Google and Meta.

As for the project location, the project is not official yet; it is awaiting approval from the Memphis Shelby County Economic Development Growth Engine, the Tennessee Valley Authority and other state agencies. The city is also discussing possible tax breaks and other incentives to attract xAI. “We have work to do, make no mistake,” Townsend told BI. “But we are incredibly grateful for the interest shown by Elon, his executives and the xAI team.”

While specific details about the exact location of the facility are not being made public for security reasons, reports suggest it may occupy the former Electrolux facility in Memphis, according to the Memphis Business Journal. According to reports, the Greater Memphis Chamber became involved in the project about 90 days ago and efforts have significantly ramped up since then.

“We had an ideal location, ripe for investment,” said Memphis Mayor Paul Young. “And we had the power of our people who created new and innovative processes to keep up the pace needed to deliver this transformational project.”

If approved, the Gigafactory of Compute will place Memphis at the center of AI innovation, marking a historic investment in the city’s future.

To support the project, xAI recently announced a $6 billion Series B funding round, with Musk personally investing $750 million. This financial boost values ​​the company at more than $24 billion. Additionally, Musk redirected Nvidia chips originally intended for Tesla to xAI, prioritizing the AI ​​project.

Interestingly enough, Musk isn’t the only tech leader eyeing Tennessee. Earlier this year, Oracle Corp. Chairman Larry Ellison, a friend of Musk and a former Tesla Inc. board member, announced plans to move Oracle’s headquarters to Nashville. In addition, Amazon.com Inc. operates a Nashville office with a significant number of employees.

Published by:

Divya Bhati

Published on:

June 6, 2024

Back To Top