XAI will not seek local tax incentives; could build its own gray water plant
Elon Musk-founded artificial intelligence company xAI could build its own gray water plant, according to a person familiar with the matter. (Leon Neal/Pool Photo via AP)
Elon Musk-founded artificial intelligence company xAI will not pursue tax incentives from the Economic Development Growth Engine, according to a person familiar with the matter.
The person, who is not authorized to speak publicly, said the company recently made its choice on tax incentives. They also said the company is considering construction of a plant that would cool its massive supercomputer with recycled wastewater rather than use the Memphis Sand Aquifer.
The company is currently assembling the “racks”— computer terminals that will house the advanced semiconductors that will power artificial computing in Memphis.
The person familiar with the matter said xAI is not pursuing tax incentives because it is already here and the incentive is not needed to attract it. Construction is well underway at the supercomputer site in Southwest Memphis.
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Sophia Surrett
Sophia Surrett is a University of Alabama graduate, where she received her B.A. in news media and M.A. in journalism and media studies. She covers commercial real estate, economic development, residential real estate, restaurant real estate, and hospitality and tourism.
Samuel Hardiman
Samuel Hardiman is an enterprise and investigative reporter who focuses on local government and politics. He began his journalism career at the Tulsa World in Tulsa, Oklahoma, where he covered business and, later, K-12 education. Hardiman came to Memphis in 2018 to join the Memphis Business Journal, covering government and economic development. He then served as the Memphis Commercial Appeal’s city hall reporter and later joined The Daily Memphian in 2023. His current work focuses on Elon Musk’s xAI, regional energy needs and how Memphis and Shelby County government spend taxpayer dollars.
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