According to Odaily, Elon Musk's artificial intelligence company, xAI, has plans to construct a new factory in Memphis. The factory will house a giant supercomputer, aimed at enhancing the company's capabilities in the competitive field of manufacturing and providing chatbots and other AI tools. Since early March, Musk and his team at xAI have been collaborating with officials in Memphis to plan the new factory, which is set to be one of the largest multi-billion dollar investments in the city's history.
The Chairman of the Greater Memphis Chamber, Townsend, stated that many details about the new factory, including the total cost and the number of jobs it will create, have not yet been disclosed. He added that the city has also discussed offering xAI tax breaks or other business incentives to attract the project to Memphis, but the specific details are still uncertain.
In a previous investor presentation in May, Musk stated that xAI would need up to 100,000 dedicated semiconductors to train and run the next version of its conversational AI, Grok. xAI plans to use these dedicated computing power chips to form a massive supercomputer, which it refers to as a 'gigafactory of compute'. Musk expressed his hope to have this supercomputer operational by the fall of 2025 and will personally ensure its timely delivery. Once completed, the scale of the connected chip set of this computer will be at least four times the size of the largest existing GPU cluster.