tech

Jon Keegan9/11/24

Musk fires up his power-hungry supercomputer, surprising his neighbors

In a sprawling factory in South Memphis, Tennessee, Elon Musk’s AI startup xAI recently turned on its new “Colossus” supercomputer. Powered by 100,000 Nvidia H100 GPUs, the supercomputing cluster was completed in just 122 days, according to Musk.

But that breakneck speed was achieved by cutting corners and keeping local community leaders in the dark, according to a new report by NPR.

The small community in which the factory sits was surprised to learn about their new power-hungry neighbor. Utility officials signed NDAs, leaving civic groups and the local city council unaware of the plans for the site.

The new xAI supercomputing cluster is currently consuming 1 million gallons of the community’s drinking water per day, and 50 megawatts of power from the local utility, which it is augmenting with 18 mobile methane-powered gas turbines without obtaining any permits, according to the report.

With plans to double the size of the cluster, Musk’s factory is now facing increased scrutiny by local officials and the EPA.

How Memphis became a battleground over Elon Musk’s xAI supercomputer

How Memphis became a battleground over Elon Musk’s xAI supercomputer

The small community in which the factory sits was surprised to learn about their new power-hungry neighbor. Utility officials signed NDAs, leaving civic groups and the local city council unaware of the plans for the site.

The new xAI supercomputing cluster is currently consuming 1 million gallons of the community’s drinking water per day, and 50 megawatts of power from the local utility, which it is augmenting with 18 mobile methane-powered gas turbines without obtaining any permits, according to the report.

With plans to double the size of the cluster, Musk’s factory is now facing increased scrutiny by local officials and the EPA.

More Tech

tech

Tesla and Google’s Waymo to Senate committee: Fix self-driving laws or China will win

Ahead of their appearances Wednesday at a Senate committee hearing on the future of self-driving, the two biggest names in the sector, Tesla and Google’s Waymo, are talking the same book.

Both companies are warning lawmakers that without a federal framework for autonomous vehicles — something Congress has debated for years and is now considering again as part of broader transportation legislation — China will seize the lead.

“The United States is locked in a global race with Chinese AV companies for the future of autonomous driving, a trillion-dollar industry comparable in strategic importance to flight and space travel,” Waymo Chief Safety Officer Mauricio Peña said in written remarks ahead of the event. “In the absence of US leadership on a national AV legislative framework, Chinese AV competitors will fill the gap and set the safety and technical standards for the rest of the world.”

Tesla Vice President of Vehicle Engineering Lars Moravy, for his part, wrote, “If the US does not lead in AV development, other nations — particularly China — will shape the technology, standards, and global market.” He added, “China will be the dominant manufacturer of transportation for the 21st century.”

The two companies face steep competition from Chinese firms, including Baidu, which operates a robotaxi service, and BYD, whose EVs offer driver assistance technology similar to Tesla’s Full Self-Driving and which has been outselling the US automaker.

Hit the Road, Mac: The Future of Self-Driving Cars

Hit the Road, Mac: The Future of Self-Driving Cars

Both companies are warning lawmakers that without a federal framework for autonomous vehicles — something Congress has debated for years and is now considering again as part of broader transportation legislation — China will seize the lead.

“The United States is locked in a global race with Chinese AV companies for the future of autonomous driving, a trillion-dollar industry comparable in strategic importance to flight and space travel,” Waymo Chief Safety Officer Mauricio Peña said in written remarks ahead of the event. “In the absence of US leadership on a national AV legislative framework, Chinese AV competitors will fill the gap and set the safety and technical standards for the rest of the world.”

Tesla Vice President of Vehicle Engineering Lars Moravy, for his part, wrote, “If the US does not lead in AV development, other nations — particularly China — will shape the technology, standards, and global market.” He added, “China will be the dominant manufacturer of transportation for the 21st century.”

The two companies face steep competition from Chinese firms, including Baidu, which operates a robotaxi service, and BYD, whose EVs offer driver assistance technology similar to Tesla’s Full Self-Driving and which has been outselling the US automaker.

Waymo is now worth $126 billion, after raising $16 billion in a funding round led by its parent company, Google. With this capital, Waymo plans to expand its robotaxi service to more than 20 new cities, including international markets.

On Wednesday, Waymo’s chief safety officer will testify at a Senate Committee on Commerce, Science, and Transportation hearing, alongside a representative for Tesla, urging lawmakers to create a national regulatory framework for autonomous vehicles.

tech

Dan Ives thinks Tesla will someday merge with SpaceX, too

Wedbush Securities analyst Dan Ives is just like us: he thinks that Elon Musk’s Tesla and SpaceX could someday become one company.

In a note this morning, Ives argued there’s a “growing chance” Tesla will eventually merge in some form with newly merged SpaceX and xAI, as Musk builds what he sees as a single, sprawling AI ecosystem spanning both space and Earth.

Over time, Ives wrote, he thinks Musk will look to “combine forces/technologies,” with the long-term goal of owning and controlling more of the AI stack. Ives thinks Musk could achieve that “holy grail” over the next year and a half.

Earlier today, we pointed out the myriad similarities between Tesla and SpaceX — shared impossible missions, common methods for achieving those goals, and a physics-first, economics-later ethos — as well as Musk’s long-standing penchant for knitting his companies together in the first place.

SpaceX and Tesla are sounding very similar these days

SpaceX and Tesla are sounding very similar these days

Over time, Ives wrote, he thinks Musk will look to “combine forces/technologies,” with the long-term goal of owning and controlling more of the AI stack. Ives thinks Musk could achieve that “holy grail” over the next year and a half.

Earlier today, we pointed out the myriad similarities between Tesla and SpaceX — shared impossible missions, common methods for achieving those goals, and a physics-first, economics-later ethos — as well as Musk’s long-standing penchant for knitting his companies together in the first place.

SpaceX and Tesla are sounding very similar these days

Elon Musk’s AI rocket company has a lot in common with his AI vehicle company.

Donald Trump Watches SpaceX Launch Its Sixth Test Flight Of Starship Spacecraft

Elon Musk laughing

SpaceX merges with xAI, reportedly will seek an IPO valuation of $1.25 trillion

Elon Musk says his space company has merged with his AI company, with the lofty goal of eventually putting data centers in space.

Nate Becker2/2/26

Latest Stories

Sherwood Media, LLC produces fresh and unique perspectives on topical financial news and is a fully owned subsidiary of Robinhood Markets, Inc., and any views expressed here do not necessarily reflect the views of any other Robinhood affiliate, including Robinhood Markets, Inc., Robinhood Financial LLC, Robinhood Securities, LLC, Robinhood Crypto, LLC, or Robinhood Money, LLC.

©2026 Sherwood Media, LLC