Elon Musk’s xAI Expands Memphis AI Campus with Third Building ‘MACROHARDRR’ to Boost Compute Power

Elon Musk has announced that xAI has acquired a third building at its Memphis, Tennessee site near the Colossus 2 data center to increase its AI training capacity.

The new structure will be called “MACROHARDRR,” an extension of Musk’s “Macrohard” project, which aims to develop software entirely from scratch using AI agents.

This expansion is expected to raise xAI’s total training compute capacity to an impressive 2 gigawatts. However, the building is just the start of the investment needed. xAI still requires GPUs, power sources, and other infrastructure to make the site fully operational.

Despite being one of the wealthiest individuals globally, Musk is actively raising tens of billions of dollars to fund the project, as xAI reportedly spends over a billion dollars monthly in its race to build the world’s most advanced AI.

Nvidia has reportedly signed a deal to supply the GPUs needed for the site, helping Musk aim for 50 million H100-equivalent GPUs over the next five years. Musk’s ultimate goal is to surpass all other AI competitors combined in compute power, challenging giants like Microsoft.

To power the data center, Musk has purchased an overseas power plant and is transporting it to the U.S. for Colossus 2. Additionally, xAI plans to install a gas turbine facility capable of supplying 460MW from natural gas, supporting its ambitious compute capacity targets.

Though xAI is a newcomer in the AI field, it has quickly caught up with established players like OpenAI due to Musk’s massive resource investment. Nvidia CEO Jensen Huang praised the rapid development of the first Colossus project, which became operational in just 19 days—a process that typically takes four years.

With multiple AI companies investing billions, the future of AI development is poised for significant growth, raising both excitement and concerns about where this rapid expansion will lead.