Tech
tech
Jon Keegan

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.

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

See all Tech
tech

Amazon closes at all-time high

Fresh off strong earnings Thursday, Amazon saw its stock price end the week at a record closing high of $244.22.

The stock is up 10% so far this year.

The e-commerce and cloud giant beat analysts’ revenue and earnings, and its massive gain was responsible for more than all of the positive return delivered by the SPDR S&P 500 ETF on Friday.

tech
Rani Molla

Google uses an AI-generated ad to sell AI search

Google is using AI video to tell consumers about its AI search tools, with a Veo 3-generated advertisement that will begin airing on TV today. In it, a cartoonish turkey uses Google’s AI Mode to plan a vacation from its farm before it’s eaten for Thanksgiving.

Like other AI ad campaigns that have opted to depict yetis or famous artworks rather than humans, Google chose a turkey as its protagonist to avoid the uncanny valley pitfall that happens when AI is used to generate human likenesses.

Google’s in-house marketing group, Google Creative Lab, developed the idea for the ad — not Google’s AI — but chose not to prominently label the ad as AI, telling The Wall Street Journal that consumers don’t actually care how the ad was made.

Google’s in-house marketing group, Google Creative Lab, developed the idea for the ad — not Google’s AI — but chose not to prominently label the ad as AI, telling The Wall Street Journal that consumers don’t actually care how the ad was made.

tech
Rani Molla

Amazon, Alphabet, Meta, and Microsoft combined spent nearly $100 billion on capex last quarter

The numbers are in and tech giants Amazon, Alphabet, Meta, and Microsoft spent a whopping $97 billion last quarter on purchases of property and equipment. That’s nearly double what it was a year earlier as AI infrastructure costs continue to balloon and show no sign of stopping. Amazon, which reported earnings and capital expenditure spending that beat analysts’ expectations yesterday, continued to lead the pack, spending more than $35 billion on capex in the quarter that ended in September.

Note that the data we’re using here is from FactSet, which strips out finance leases when calculating capital expenditures. If those expenses were included the total would be well over $100 billion last quarter.

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.