Elon Musk’s xAI poised to invest billions of dollars in Memphis supercomputer
xAI's Brent Mayo speaks at the Greater Memphis Chamber's annual luncheon at the Peabody Dec. 4, 2024. (Patrick Lantrip/The Daily Memphian)
Elon Musk’s artificial intelligence startup xAI could invest tens of billions more into its Memphis supercomputer with the data center reaching up to 1 million high-tech Nvidia semiconductors, Brent Mayo, xAI’s top Memphis executive, said Wednesday, Dec. 4.
Mayo said the company’s planned expansions will occur throughout the next two years, and the company will not pursue tax incentives for the additional investment. He announced the expansion at the Greater Memphis Chamber’s annual luncheon Wednesday.
Key suppliers could also join the company in Memphis. Tech giants Nvidia, Super Micro Computer and Dell could soon invest in Memphis manufacturing facilities, Mayo and Greater Memphis Chamber CEO Ted Townsend said in an interview on Monday, Dec. 2. They also made the announcement Wednesday at the luncheon.
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Townsend said the tech companies — which have had executives in and out of Memphis in recent months — are exploring new manufacturing space in the city.
The tech companies will not build on the 552 acres xAI recently leased southeast of its facility at 3231 Paul R. Lowry Road.
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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 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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