Musk’s xAI spending $18 billion for another 300,000 Nvidia GPUs for “Colossus 2”
Elon Musk’s xAI is racing to finish its “Colossus 2” AI data center in Tennessee, and will need to spend at least $18 billion for the remaining 300,000 Nvidia GPUs, according to a report from The Wall Street Journal.
Musk is spending billions to keep the company’s Grok AI model at the front of the pack in the AI race, and he’s taking any shortcuts he can to get there.
According to the report, the site for the Colossus 2 data center sits on the border with Mississippi, and the company is building out a 1-gigawatt power station across state lines and running the power back to Tennessee.
By importing the power across state lines, Musk is taking advantage of looser regulations for power generation in Mississippi. The first Colossus used temporary gas turbines to get around permitting requirements, as Musk was reportedly too impatient to wait for local infrastructure to be upgraded.
Recent reports say the company is burning through as much as $1 billion per month and hopes to turn a profit in 2027.
According to the report, the site for the Colossus 2 data center sits on the border with Mississippi, and the company is building out a 1-gigawatt power station across state lines and running the power back to Tennessee.
By importing the power across state lines, Musk is taking advantage of looser regulations for power generation in Mississippi. The first Colossus used temporary gas turbines to get around permitting requirements, as Musk was reportedly too impatient to wait for local infrastructure to be upgraded.
Recent reports say the company is burning through as much as $1 billion per month and hopes to turn a profit in 2027.
