Welcome back to the Elon Musk Podcast.
This is a show where we discuss the critical crossroads that
shape SpaceX, Tesla X, The Boring Company, and Neuralink.
And I'm your host, Will Walden. Elon Musk's artificial
intelligence startup XAI is set to establish a supercomputer
facility at the former Electrolux site in Memphis, TN.
This new gigafactory of compute will be among the largest AI
supercomputers globally. Now, Memphis officials led by 10
Townsend, president of the Greater Memphis Chamber, have
been in discussions with Elon Musk and his team since March to
bring this major investment to the city.
The announcement was made during a press briefing where Townsend
revealed that the factory could potentially become the largest
multibillion dollar investment in Memphis's history.
The city is considering offering tax breaks and other incentives
to XAI. Those specific cost estimates
and job creation numbers will be detailed in later dates.
Now in May, Musk pitched the idea of his supercomputer to
investors, describing it as essential for powering XA is
chat bot croc. He outlined a goal for the
supercomputer to be operational by next fall and mentioned a
possible partnership with Oracle for its construction.
This pitch was part of XA is successful $6 billion Series B
fund round, which attracted significant investors such as
Anderson Horowitz, Sequoia Capital, It's Saudi Arabia's
public investment fund. Now the new AI project aims to
leverage advanced technology and significant computing power to
enhance artificial intelligence capabilities.
Now Memphis was chosen for this groundbreaking project due to
its strategic advantages and the proactive efforts of local
officials to facilitate the development.
And at a video press conference, Townsend emphasized that the
project represents the city's largest capital investment by a
new to market company, although he did not specify the exact
location. But the former Electrolux
facility at 3231 Paul Lowry Rd. is presumed to be the site.
This facility was acquired by Phoenix Investors for $35
million in December. Memphis Mayor Paul Young
expressed enthusiasm for the project.
He said the city's history of innovation and its readiness to
embrace transformative initiatives underscores the
city's commitment to supporting cutting edge technology and
fostering economic growth. Now, Doug McGowan, president and
CEO of Memphis Light, Gas and Water, assured that the utility
company would meet XA is needs without jeopardizing the local
power grid or water resources. The infrastructure is ready to
support such a massive technological endeavor and the
XAI project is still pending approval from county development
authorities, the Tennessee Valley Authority and other
regulatory bodies. And the swift coordination among
various stakeholders has positioned Memphis favorably for
this significant investment. Now, the Electrolux site,
proximity to other state certified industrial properties
and the TVA Allen Fossil Fuel Plant, which is undergoing
redevelopment, add strategic value to the location.
The area's infrastructure and state certification out of the
Tennessee Department of Economic and Community Development Select
Tennessee initiative, making an attractive site for corporate
investment. Now.
The former Electrolux plant closed in 2022 after being
announced foreclosure in January of 2019.
A strategic location near other industrial sites and also
infrastructure is a key, including the TVA Allen Fossil
Flio plant. Positioned as a prime candidate
for this facility. The TVA Allen Fossil Plant
redevelopment is expectorated to generate significant economic
benefits for the region. The demolition of the plant,
scheduled to be completed by 2025, and ongoing site
remediation efforts show that the area is ready for new
industrial developments in. The exact number of jobs and
total capital investment an XAI supercomputer will bring to
Memphis remains undetermined. However, the project scale
indicates a substantial economic impact, potentially rivaling
other major developments like Saint Jude Children's Research
Hospital and also FedEx in the region.
Now, the project's completion is anticipated later this year,
pending necessary approvals. And this timeline shows that
Elon is urgent and it's a high stakes game out there,
developing one of the world's most advanced AI supercomputers.
Now, a supercomputer like the one proposed for XAI is designed
to process vast amounts of data and very high speeds, crucial
for advanced AI applications. Tennessee already hosts the
world's fastest supercomputer, known as Frontier at Oak Ridge
National Laboratory, which cost $600 million and was built by
Hewlett Packard Enterprise and AMD.
With the addition of XAI supercomputer, Tennessee could
become home to two of the world's most powerful
supercomputing facilities. This development shows that the
state's growing in prominence in a high performance computing and
AI research. Now, XAI was founded by Elon in
July of 2023, and they're going to push the boundaries of AI
technology. According to Musk, Musk's
involvement in the project, alongside his leadership roles
at Tesla and SpaceX bring significant attention and
credibility to this endeavor. Now Elon's addition to Twitter
known as X Now and his focus on AI through XAI shows that he's
getting more closely involved with the AI business.
First Tesla with their AI, Now XAI and Grok and X or Twitter.
It's a prioritized business strategy for Elon now.
And the establishment of XAI supercomputer facility in
Memphis is a significant milestone in AI tech and also
for the economic development for the city.
It'll bring in hundreds of jobs, maybe thousands of jobs.
And also, the project's success will likely have far reaching
impacts on local and also global technology, positioning Memphis
as a key player in the AI revolution.
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