SAN FRANCISCO, March 7 (Xinhua) -- Elon Musk's AI company xAI has acquired a 1-million-square-foot property in Southwest Memphis, U.S. state of Tennessee, to expand its AI data center operations, according to a press release from the Greater Memphis Chamber on Friday.
The newly acquired land will support xAI's existing Memphis data center infrastructure.
"xAI's acquisition of this property ensures we'll remain at the forefront of AI innovation, right here in Memphis," xAI senior site manager Brent Mayo said in a statement.
According to reports, xAI recently built a second data center in Atlanta with 700 million U.S. dollar worth of chips and other equipment. It also inked a deal with Dell to buy 5 billion dollar worth of GPU-packed servers.
xAI utilizes its data centers to train and operate its AI models, known as Grok. The company is making significant upgrades to its primary Memphis-based facility, Colossus, aiming to scale its capacity to 1 million Nvidia GPUs by the end of this year, up from 100,000 GPUs last year.
Financially, xAI is said to be in discussions for a 10 billion dollar fundraising round, which could bring the company's valuation to 75 billion dollars. This follows its last funding round in late 2024, where xAI raised 6 billion dollars.
