xAI, Elon Musk’s AI firm, has acquired a 1 million-square-foot property in Southwest Memphis to broaden its AI information heart footprint, according to a press release from the Memphis Chamber of Commerce.

The brand new land will host infrastructure to enhance xAI’s present Memphis information heart.

“xAI’s acquisition of this property ensures we’ll stay on the forefront of AI innovation, proper right here in Memphis,” xAI senior web site supervisor Brent Mayo mentioned in a press release.

It wasn’t instantly clear whether or not the growth was associated to a previously announced lease on a 522-acre web site in Memphis.

xAI is hungry for AI {hardware}. Based on reports, the startup lately constructed a second information heart in Atlanta with $700 million price of chips and different tools. It additionally inked a take care of Dell to purchase $5 billion price of GPU-packed servers.

xAI makes use of its information facilities to coach and run its household of AI fashions, Grok. The corporate plans to improve its major Memphis-based facility, known as Colossus, to 1 million Nvidia GPUs someday this 12 months, up from 100,000 final 12 months.

Some residents have criticized xAI’s continued growth in Memphis, arguing it’ll pressure the grid and worsen the realm’s air high quality. To aim to win them over, xAI has supplied the native utility with discounted Tesla-manufactured batteries and constructed a water recycling plant.

Partly to fund its AI infrastructure initiatives, xAI is alleged to be discussing a $10 billion spherical of fundraising that might worth the corporate at $75 billion. xAI closed its last funding round, which topped out at $6 billion, in late 2024.