Elon Musk’s New $5 Billion AI Project in Memphis

It’s the biggest AI super computer.

Elon Musk’s xAI startup just launched its $5 billion AI datacenter in Memphis.

xAI is Elon Musk’s Artificial Intelligence company that’s valued at $24 billion.

The startup is turning a former refrigerator factory into the world’s largest supercomputer.

The new xAI data center uses 100,000 Nvidia (NASDAQ: NVDA) H100s. Plus, they plan to add 300,000 B200s from Nvidia next year.

Each H100 costs approximately $25,000. That means xAI spent $2.5 billion on the Nvidia chips.

Plus, the other costs of the data center are likely an additional $2.5 billion. And that brings the total cost to $5 billion.

The facility will use 150MW of electricity. That’s the equivalent energy usage of 100,000 homes.

xAI will get its power from the Tennessee Valley Authority.

That electric utility is partnering with General Electric (NYSE: GE) to develop an Oppenheimer Project in Oak Ridge Tennessee.

This breakthrough technology will provide safe, clean, reliable and cheap electricity to the world.

Ian