Elon Musk’s xAI Buys Building for Third Supersized Data Center

Elon Musk’s xAI has bought a building for a third supersized data center it’s planning outside Memphis, Tennessee, in pursuit of the company’s goal of getting 1 million chips online to power its artificial intelligence models, according to property records and a person with direct knowledge of the project.

The expansion plan shows xAI is doubling down on its strategy of building, running and powering its own data centers, even as the company is still trying to figure out how to make money from its Grok AI models. Unlike rivals such as OpenAI and Anthropic that are more reliant on partnerships with outside developers and big cloud providers, xAI has mostly gone it alone.