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Rani Molla

Musk: Tesla restarting Dojo supercomputer effort as “AI5 chip design is in good shape”

Tesla CEO Elon Musk said in a post on X over the weekend that the company plans to restart work on its Dojo supercomputer, dubbed Dojo3, saying that the AI5 chip the company had been developing is in “good shape.”

The Dojo supercomputer trains Tesla’s AI models, including the one behind its all-important Full Self-Driving tech. The company stopped work on Dojo in August. “It doesn’t make sense for Tesla to divide its resources and scale two quite different AI chip designs,” Musk said at the time. “The Tesla AI5, AI6 and subsequent chips will be excellent for inference and at least pretty good for training.”

“Pretty good” appears to be good enough.

In the interim, Tesla relied more on companies like Nvidia and Advanced Micro Devices for AI training. Restarting Dojo suggests Tesla plans to bring at least some AI training back in-house.

Musk also runs AI company xAI, which has its own supercomputer and a substantial business relationship with Tesla. A plurality of Tesla shareholders recently voted in favor of investing in Musk’s AI company, but the board declined to approve the measure because of a large number of abstentions.

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Jon Keegan
1/16/26
OpenAI set to start rolling out ads to free and ChatGPT Go users

OpenAI says user conversations will be kept private from advertisers, and answers will not be influenced by ads.

chatgpt ads
tech
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.

Elon Musk’s xAI datacenter generating extra electricity illegally, regulator rules

Elon Musk’s xAI datacenter generating extra electricity illegally, regulator rules

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.

Rani Molla
AI candy
1/16/26
Google has a leg up over Apple in the race to roll out personalized AI

Google and Apple are going for the holy grail of AI chatbot integration, but it looks like Google is getting there first.

Beauty Queen Waving
tech
Rani Molla

Trump to push Big Tech to fund new power plants as AI drives up electricity costs

President Donald Trump is expected to announce a plan Friday morning that would require Big Tech companies to bid on 15-year contracts for new electricity generation capacity. The move would effectively force companies to help fund new power plants in the PJM region as soaring demand from AI data centers pushes up electricity costs across the US power grid.

Earlier this week, Trump called on tech giants to “pay their own way,” arguing that households and small businesses should not bear the cost of power infrastructure needed to support energy-hungry data centers.

Microsoft quickly responded, saying it would “pay utility rates that are high enough to cover our electricity costs,” along with committing to other changes aimed at easing pressure on the grid. Other major tech companies are expected to follow suit, though Wedbush Securities analyst Dan Ives warned the added costs could slow the pace of data center build-outs.

As we’ve noted, forcing tech companies to shoulder higher electricity costs is likely to hit some firms harder than others. Companies like Microsoft, Google, and Amazon can pass at least some of those costs on to customers by selling data center capacity downstream. Meta, in contrast, does not have a cloud business, meaning its AI ambitions lack a direct revenue stream to offset rising power costs.

So far tech stocks don’t appear to be affected much in premarket trading. However utility companies most levered to the AI boom certainly are, with Vistra, Constellation Energy, and Talen Energy deep in the red ahead of the open as analysts at Jefferies warn that these firms face risks from this plan.

Trump Moves to Make Tech Giants Pay for Surging Power Costs

Trump Moves to Make Tech Giants Pay for Surging Power Costs

Earlier this week, Trump called on tech giants to “pay their own way,” arguing that households and small businesses should not bear the cost of power infrastructure needed to support energy-hungry data centers.

Microsoft quickly responded, saying it would “pay utility rates that are high enough to cover our electricity costs,” along with committing to other changes aimed at easing pressure on the grid. Other major tech companies are expected to follow suit, though Wedbush Securities analyst Dan Ives warned the added costs could slow the pace of data center build-outs.

As we’ve noted, forcing tech companies to shoulder higher electricity costs is likely to hit some firms harder than others. Companies like Microsoft, Google, and Amazon can pass at least some of those costs on to customers by selling data center capacity downstream. Meta, in contrast, does not have a cloud business, meaning its AI ambitions lack a direct revenue stream to offset rising power costs.

So far tech stocks don’t appear to be affected much in premarket trading. However utility companies most levered to the AI boom certainly are, with Vistra, Constellation Energy, and Talen Energy deep in the red ahead of the open as analysts at Jefferies warn that these firms face risks from this plan.

tech
Jon Keegan

OpenAI working to build a US supply chain for its hardware plans, including robots

When OpenAI purchased Jony Ive’s I/O, it entered the hardware business. The company is currently ramping up to produce a mysterious AI-powered gadget.

But OpenAI plans on making more than just consumer gadgets — it also plans on making data center hardware, and even robots.

Bloomberg reports that OpenAI has been on the hunt for US-based suppliers for silicon and motors for robotics, as well as cooling systems for data centers.

AI companies are looking toward robots as a logical next step for finding applications for their models.

OpenAI told Bloomberg that US companies building the AI brains of robots might have an edge against the Chinese hardware manufacturers that are currently making some impressive humanoid robots.

OpenAI Seeks US-Based Suppliers for Planned Robotics, AI Device Push

OpenAI Seeks US-Based Suppliers for Planned Robotics, AI Device Push

Bloomberg reports that OpenAI has been on the hunt for US-based suppliers for silicon and motors for robotics, as well as cooling systems for data centers.

AI companies are looking toward robots as a logical next step for finding applications for their models.

OpenAI told Bloomberg that US companies building the AI brains of robots might have an edge against the Chinese hardware manufacturers that are currently making some impressive humanoid robots.

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