XAI has been slow to pay MLGW
Memphis Light, Gas and Water has sent Elon Musk’s xAI several cutoff notices for its supercomputer but never shut off power. Musk arrives before the 60th Presidential Inauguration in the Rotunda of the U.S. Capitol in Washington, Monday, Jan. 20, 2025. (Chip Somodevilla/Pool Photo via AP)
The artificial intelligence startup xAI has, at times, been slow to pay its electric bills, according to copies of the company’s bills obtained by The Daily Memphian.
Memphis Light, Gas and Water has sent xAI several cutoff notices for its Southwest Memphis supercomputer but has never shut off the facility’s power. At points in August and November, the company owed MLGW more than $400,000 in back payments for the power it consumes.
The late payments, late fees and cutoff notices detail part of the complex relationship the Elon Musk-founded artificial intelligence startup has had with local governments and utilities.
The company and MLGW have partnered on building a new substation to serve the supercomputer and could partner on building a second.
Topics
Subscriber Only xAI Elon Musk MLGWThank you for supporting local journalism.
Subscribers to The Daily Memphian help fund our not-for-profit newsroom of nearly 40 local journalists plus more than 20 freelancers, all of whom work around the clock to cover the issues impacting our community. Subscriptions - and donations - also help fund our community access programs which provide free access to K-12 schools, community organizations, and more. Thank you for making our work possible.
Samuel Hardiman
Samuel Hardiman is an enterprise and investigative reporter who focuses on local government and politics. A native Rhode Islander who lives Downtown, he enjoys tennis, golf and reading.
Want to comment on our stories or respond to others? Join the conversation by subscribing now. Only paid subscribers can add their thoughts or upvote/downvote comments. Our commenting policy can be viewed here.