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Jon Keegan

EPA: xAI’s Colossus data center illegally used gas turbines without permits

The Environmental Protection Agency has ruled that xAI violated the law when it used dozens of portable gas generators for its Colossus 1 data center without air quality permits.

When xAI set out to build Colossus 1 in Memphis, Tennessee, CEO Elon Musk wanted to move with unprecedented speed, avoiding all of the red tape that could slow such a big project down.

To power the 1-gigawatt data center, Musk took advantage of a local loophole that allowed portable gas generators to be used without any permits, as long as they did not spend more than 364 days in the same spot. That allowed xAI to bring in dozens of truck-sized gas generators to quickly supply the massive amount of power the data center needed to train xAI’s Grok model.

The new EPA rule says the use of such portable generators falls under federal regulation, and the company did need air quality permits to operate the turbines. xAI is also using dozens of such generators to power its Colossus 2 data center just over the border in Alabama.

To power the 1-gigawatt data center, Musk took advantage of a local loophole that allowed portable gas generators to be used without any permits, as long as they did not spend more than 364 days in the same spot. That allowed xAI to bring in dozens of truck-sized gas generators to quickly supply the massive amount of power the data center needed to train xAI’s Grok model.

The new EPA rule says the use of such portable generators falls under federal regulation, and the company did need air quality permits to operate the turbines. xAI is also using dozens of such generators to power its Colossus 2 data center just over the border in Alabama.

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After tussle with Pentagon, Anthropic’s $60 billion worth of recent investments might be at risk

The fallout from Anthropic’s dramatic split from the Pentagon is still being measured. For a domestic company to be labeled a “supply-chain risk to national security” by the US defense secretary is unprecedented, as Anthropic noted in a post responding to Defense Secretary Pete Hegseth’s tweet.

Making it even more shocking is the fact that Anthropic appeared to be on track to have one of the largest and most anticipated tech IPOs in American history.

Axios’ Dan Primack writes that the $60 billion in venture capital Anthropic just raised last month could very well be at risk. Primack argues that investors may get cold feet now that the company has run afoul of the Trump administration, and it faces significant uncertainty as the industry waits to see what official acts follow Hegseth’s words.

Making it even more shocking is the fact that Anthropic appeared to be on track to have one of the largest and most anticipated tech IPOs in American history.

Axios’ Dan Primack writes that the $60 billion in venture capital Anthropic just raised last month could very well be at risk. Primack argues that investors may get cold feet now that the company has run afoul of the Trump administration, and it faces significant uncertainty as the industry waits to see what official acts follow Hegseth’s words.

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Google may not just power Apple’s Siri — it could host it, too

Apple has asked Google to look into running the upcoming AI Siri on its servers, The Information reports, following a previous agreement for Google’s Gemini model to underpin the new Siri in the first place.

Apple’s reliance on third parties for AI and cloud computing has helped it keep spending lower than its peers. But it also deepens the company’s dependence on rivals for critical AI infrastructure. Apple already relies heavily on Google and Amazon for cloud services. Hosting Siri on Google’s servers would expand that relationship.

Apple has invested in its own AI cloud system, Private Cloud Compute, meant to run sensitive queries on Apple-designed servers. But according to The Information, only about 10% of that capacity is in use, potentially signaling another AI execution problem for Apple.

Apple has invested in its own AI cloud system, Private Cloud Compute, meant to run sensitive queries on Apple-designed servers. But according to The Information, only about 10% of that capacity is in use, potentially signaling another AI execution problem for Apple.

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Good news: Tesla sales stabilized in Europe. Bad news: Europe’s not buying much.

The good news for Tesla: vehicle sales jumped in February in a number of early-reporting European countries.

The bad news: Europe remains a small market for Tesla, so stabilization there isn’t the boon it would be in bigger markets like the US and China, where its vehicle sales continue to struggle.

For what it’s worth, Tesla has been de-emphasizing vehicle sales as it pivots its ambitions to AI and autonomy.

For what it’s worth, Tesla has been de-emphasizing vehicle sales as it pivots its ambitions to AI and autonomy.

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