SOUTHAVEN, Miss. — Elon Musk’s artificial intelligence venture, xAI, has significantly expanded its infrastructure footprint by acquiring a third facility to support its massive computing ambitions. The newly purchased building, located in Southaven, Mississippi, is strategically positioned adjacent to the company’s Colossus 2 site. The expansion is expected to bring the total training compute capacity of the xAI complex to nearly 2 gigawatts—a staggering amount of power equivalent to the electricity required to fuel approximately 750,000 U.S. homes.
Musk confirmed the acquisition through his social media platform, X, revealing that the new structure has been named Macrohardrr. This nomenclature appears to be a direct jab at industry rival Microsoft, following xAI’s established pattern of naming its large-scale data centers Colossus. The facility is slated for conversion into a data center over the coming year, positioning it near a gas-fired power plant currently under construction to meet the site’s immense energy demands.
The aggressive infrastructure build-out is fueled by a substantial capital injection. xAI Holdings is reportedly in advanced discussions to raise new funding at a valuation of approximately $230 billion. Musk maintains a majority 53 percent stake in the venture, a holding now estimated to be worth $60 billion. A significant portion of the newly raised capital is expected to fund the procurement of hardware, with Colossus 2 alone projected to house 550,000 Nvidia chips costing tens of billions of dollars.
Beyond raw computing power, xAI is positioning its software ecosystem to challenge established digital institutions. In October, Musk introduced Grokipedia, an AI-powered encyclopedia designed to serve as an alternative to Wikipedia. Musk has frequently criticized Wikipedia for perceived ideological biases, and he claims Grokipedia will offer a more accurate and comprehensive knowledge base. The project aligns with xAI’s broader mission to leverage artificial intelligence in a way that Musk describes as helping humanity better understand the universe.
The expansion comes amid a period of unprecedented wealth growth for Musk. His personal net worth recently surged to nearly $750 billion after a U.S. court reinstated Tesla stock options worth $139 billion. According to the Forbes billionaires index, this development has taken Musk closer to becoming the world’s first trillionaire. (Source: IANS)
