Elon Musk’s xAI continues expansion, to invest over $20 billion in Mississippi data center: All we know
xAI, the artificial intelligence startup of the world’s richest man Elon Musk, is pouring more than $20 billion into building a data center in Southaven, Mississippi, according to a Jan. 9 report from Reuters; because the company is trying to take on rivals OpenAI and Anthropic at a time when demand for AI computing power is increasing.
The facility is expected to be operational in February 2026 and is part of the company’s expansion plans.
xAI reported a net loss of $1.46 billion in the September quarter, compared to a net loss of $1 billion in the previous quarter, Bloomberg said in a report released earlier today. Citing internal documents, he added that the money the company spent building data centers, hiring talent and developing software that would eventually power humanoid robots was skyrocketing and losses were mounting.
- The data center is close to xAI’s newly acquired power plant site in Southaven and its existing data center in Memphis, Tennessee, according to the governor’s statement.
- Memphis is home to xAI’s supercomputer cluster, known as Colossus and billed as the world’s largest.
- The company spent $7.8 billion in cash in the first nine months of the year, Bloomberg reported earlier in the day; because startups in the field of artificial intelligence often burn large amounts of cash, with billions of dollars flowing to purchase expensive, advanced data center hardware.
(With input from Reuters and Bloomberg)
