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    1. Memphis is the front line of Elon Musk’s costly foray into the AI wars. His artificial intelligence company, xAI, has already built one massive data center here in the Bluff City that it calls the world’s largest supercomputer. That facility, called “Colossus,” houses over 200,000 Nvidia chips and powers the technology behind the AI chatbot Grok. Now, Musk is close to finishing the second facility, which will be even bigger. He calls it Colossus 2.

      The AI arms race is shaping up as the most expensive corporate battle of the 21st century, with the belief that the first to the finish line will dominate the market, making speed crucial. Money also makes the difference: The more cutting-edge chips companies have, the smarter their models are. But at this stage it’s unclear if or when the enormous investments will pay off.

      Read the story for free here: [https://www.wsj.com/tech/elon-musk-xai-memphis-tennessee-power-dec4c70d?st=Ua3XEE&mod=wsjreddit](https://www.wsj.com/tech/elon-musk-xai-memphis-tennessee-power-dec4c70d?st=Ua3XEE&mod=wsjreddit)

    2. lol, catch up? No other company/government has a single cluster even close in size to Colossus 1- let alone 2. xAI has more AI cpu than anyone else – buy a lot.

      Then add – and no one else working on AI actually has a use case to make $$ for themselves past „AI will replace jobs“. Tesla has 2 robots that use it today as well as making their own hardware, they make AI CPU’s as well – for the robots that use AI.

    3. Jaded-Term-8614 on

      That is a big game. Is it true that a single NVIDIA’s Blackwell GPU costs around $30k?

    4. He gambles mostly with other people’s money which makes the gamble a lot less risky than it otherwise would be.

    5. RabidSkwerl on

      So they are gambling? Call me crazy but I don’t think the future of society should be determined by single individuals going all in on a bet.

    6. I wonder if he got the name of his supercomputer from the 70’s movie called “Colossus: The Forbin Project”?

    7. Data centers use a ton of water.

      This land is part of the Mississippi Embayment aquifer system and the whole Sparta-Memphis aquifer is kind of shared with the Mississippi River Valley Alluvial Aquifer (this is a shallower section of the overall system).

      Memphis relies on this for its public water supply and SE Arkansas sucks out huge amounts to grow rice.

      Google is also build a data center on 1000 acres across the river in West Memphis, AR.

      These aquifers are among the most drained in the country. They’re kind of running neck-in-neck with the California Central Valley, which is also bleeding its aquifer dry.

      How do we imagine we’re going to feed people when there’s no water left? Neither of these systems (California and western Arkansas) has 100 years of water at the rate we’re using them now and the rate we’re using them just keeps going up…

    8. ImHiiiiiiiiit on

      So tired of the Elon hate on reddit. Memphis was lucky to get Colossus and any other tier 3 US city would’ve fought to get it instead.

    9. Musk is gambling billions in Tax payers subsidies. to get more money out of the government for him to have more control/ money over something.

    10. Specialist_Power_266 on

      Do these data centers actually create any jobs compared to the resources they use?  I’d like to see data on actual economic benefit.

    11. Schrodinger_cube on

      If you’re Wondering why your power bill is going up so much, these guys use massive amounts of power and likely making your bills higher.

    12. squintamongdablind on

      This might get downvoted but whatever. By several metrics, Grok is performing a close second to ChatGPT outperforming Google and Claude. Unlike Zuck/Meta, Elon actually has a competitive product that makes this investment logical; until of course he manages to find a way to muck it up like he often does with his other successful products.

    13. SoftlySpokenPromises on

      I really hope all the buildings being used for AI get repurposed for something good once the bubble pops.

    14. Musk shot himself in the foot when he publicly messed with Grok’s programming to make it tell politically-motivated lies. Now, all Grok’s credibility is gone and won’t come back.

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