Elon Musk to build its largest supercomputer called Gigafactory of Compute for AI

Elon Musk is starting on an ambitious project to build what he claims will be the world’s largest supercomputer, and this mega-machine is likely to be constructed in Memphis, Tennessee. This initiative, referred to as the Gigafactory of Compute, is set to become the most significant investment in the city’s history, and is promising to create numerous jobs and boost Memphis’s status in the technology sector.

The new supercomputer will utilise Nvidia’s H100 GPUs, highly regarded among tha most sought-after chips for artificial intelligence applications. The Greater Memphis Chamber has disclosed that since March, xAI, Musk’s AI venture, has been collaborating with local officials to realise this project. If all goes according to plan, the supercomputer is expected to be operational by the fall of 2025. Ted Townsend, President and CEO of the Greater Memphis Chamber, highlighted to Business Insider that despite an unspecified timeline, xAI is working “very aggressively” to meet the target dates. Musk has also informed xAI investors of his goal to have the supercomputer online by fall 2025.

This proposed supercomputer involves a multibillion-dollar investment, expected to generate numerous jobs and attract significant investment. It is in line with Musk’s vision to advance AI technology and maintain competitive momentum against other tech giants such as OpenAI, Google, and Meta.

The project is not yet official. It is currently pending approval from several entities, like the Memphis Shelby County Economic Development Growth Engine and the Tennessee Valley Authority. The city is also discussing potential tax breaks and other incentives to attract xAI. “We have work to do, make no mistake,” Townsend mentioned to Business Insider. “But we’re incredibly grateful for the interest from Elon, his executives, and the xAI team.” Although the specific details about the exact location of the facility remains undisclosed for security reasons, reports from the Memphis Business Journal suggest that it might be situated at the former Electrolux Memphis facility. The Greater Memphis Chamber has been involved in the project for approximately 90 days, with efforts increasing significantly during this period.

Memphis Mayor Paul Young expressed optimism about the project, saying, “We had an ideal site, ripe for investment. And we had the power of our people who created new and innovative processes to keep up with the pace required to land this transformational project.”

If approved, the Gigafactory of Compute will establish Memphis as a central hub for AI innovation, marking a historic investment in the city’s future.

To support the project, xAI recently secured $6 billion in a Series B funding round, with Musk personally contributing $750 million. This financial boost values xAI at over $24 billion. Additionally, Musk has redirected Nvidia chips originally intended for Tesla to xAI, prioritising the AI project.

Musk is not the only tech leader showing interest in Tennessee. Earlier this year, Oracle Corp. Chairman Larry Ellison, a friend of Musk and a former Tesla Inc. board member, announced plans to move Oracle’s corporate headquarters to Nashville. Moreover, Amazon.com Inc. has a significant presence in Nashville, with a considerable number of employees.

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