Elon Musk and xAI are planning to build a new factory in Memphis, marking the largest investment in the city's history, according to Bloomberg.

Billionaire Elon Musk has ambitious plans to build the world's largest supercomputer in the US city of Memphis, Tennessee. Ted Townsend, President of the Greater Memphis Chamber of Commerce, said many details about the new facility, including total cost and number of jobs, have not yet been disclosed. The city is also discussing tax and business incentives to attract this project, but specific details are still being finalized.

According to information from the Greater Memphis Chamber of Commerce, this supercomputer will use Nvidia's H100 GPU series, the most expensive and sought-after AI chip today. The project is expected to create hundreds of jobs for the city of Memphis and become the largest investment in the history of this city.

Over the past year, Musk has prioritized xAI development to compete with rivals such as OpenAI, Alphabet Inc.'s Google, and Meta Platforms Inc. xAI's main product is an AI chatbot named Grok, available in Musk's X social networking application. Grok is designed to answer questions with a touch of humor and rebellion. Musk describes Grok as a counterweight to AI chatbots from other companies.

To realize this vision, xAI  xAI has raised $6 billion in Series B funding, including $750 million personally invested by Mr. Musk and $250 million worth of computing power from X.

Although details of the Memphis project, including specific job numbers and tax incentives, are still pending, a spokesman for Memphis Mayor Paul Young expressed enthusiasm for the project.

“We often say that innovation is in our nature – from the birth of modern hotels, grocery stores, and overnight delivery services to groundbreaking medical discoveries, blues and rock music 'n' roll,” Young said in a statement. “We are a city of innovators, and Memphis is the ideal place for those who want to change the world.”

If approved, the supercomputer project in Memphis will be an important step forward in the field of AI, and affirm billionaire Elon Musk's ambition to promote the development of this technology.