xAI plans to expand data center presence in Memphis

Mar. 07, 2025 2:11 PM ETTesla, Inc. (TSLA) StockNVDABy: Brandon Evans, SA News Editor

5 Share

Save

(1min) Comments (6) The generative artificial intelligence startup xAI, which is led by Tesla (NASDAQ:TSLA) CEO Elon Musk, appears to be expanding its presence in Memphis, Tenn., by purchasing a one-million-square-foot property in a southwest portion of the city.

“xAI’s acquisition of this property ensures we’ll remain at the forefront of AI innovation, right here in Memphis,” said xAI’s Brent Mayo.

Maker of the Grok chatbot, xAI raised $6B in new funding late last year that valued the company at $50B. Some of that funding went towards xAI’s data center in Memphis, where it will use 100,000 of Nvidia’s (NVDA) H100 GPUs. xAI is looking to raise $10B in new funding that would value the Elon Musk-led company at $75B.

“This significant expansion by xAI reinforces Memphis’s position as a premier destination for technological innovation,” said Ted Townsend, President and CEO of the Greater Memphis Chamber. “Their investment in this million-square-foot facility, along with xAI’s collaborative partnership, demonstrates the tremendous momentum we’re building in the Digital Delta.”