XAI will not seek local tax incentives; could build its own gray water plant

By  and , Daily Memphian Updated: June 24, 2024 6:15 AM CT | Published: June 21, 2024 11:49 AM CT

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

Sophia Surrett is a recent University of Alabama graduate, where she received her B.A. in news media and M.A. in journalism and media studies. She covers restaurants, residential real estate, and hospitality and tourism.

Samuel Hardiman

Samuel Hardiman

Samuel Hardiman is an enterprise and investigative reporter who focuses on local government and politics. A native Rhode Islander who lives in Midtown, he enjoys tennis, golf and reading.


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