When you purchase through links on our site, we may earn an affiliate commission. Here’s how it works .
(Image credit: Getty Images / Vincent Feuray) Share Share by: Copy link Facebook X Whatsapp Reddit Flipboard Share this article Join the conversation Follow us Add us as a preferred source on Google Elon Musk has revealed that xAI has purchased a third building in its Memphis, Tennessee, site near the Colossus 2 data center to expand its training capacity. The billionaire said on X that the structure will be named 'MACROHARDRR', an extension of his 'Macrohard' project, wherein Musk intends to build software completely from the ground up by solely using AI agents. This additional purchase will supposedly push xAI’s overall training compute capacity to a staggering 2 gigawatts.
xAI has bought a third building called MACROHARDRR. Will take @xAI training compute to almost 2GW. Try @Grok. Download latest app. December 30, 2025
The new building is just the beginning of the expected expenses, though. After all, xAI still must acquire the GPUs, power sources, and more for the site to be productive. And even though Musk is one of the richest people on earth, he’s still working to raise tens of billions of dollars to help fund it, as xAI is burning through over a billion dollars a month , as it races to build the most advanced AI on the planet.
Even though Musk is still working on the funding for the project, Nvidia has already reportedly signed a deal to deliver the needed GPUs for the site, helping him reach his goal of acquiring 50 million H100-equivalent GPUs in the next five years. Musk's ultimate goal, though, is to have more AI compute than everyone else combined , challenging Microsoft and other AI titans. Aside from acquiring the chips for the AI data center, the billionaire also needs to find a way to power it. It’s already been confirmed that Musk bought an overseas power plant and is shipping it to the U.S. to power Colossus 2. xAI has already set its sights on installing a gas turbine facility, which is set to supply 460MW from natural gas, helping the firm achieve its lofty compute capacity goals.
Elon Musk says xAI will have more AI compute than everyone else combined within five years
Nvidia reportedly signs another blockbuster AI supply deal, this time with Elon Musk's xAI
OpenAI’s colossal AI data center targets would consume as much electricity as entire nation of India
Although xAI is a relatively new entrant to the AI race, it quickly caught up with other, more established players like OpenAI due to the significant resources being poured into the project by Elon Musk. Nvidia CEO Jensen Huang even called his first Colossus project a “superhuman” effort, especially after the facility began operation after just 19 days — a feat that usually takes four years. But with other players in the AI game also spending billions of dollars on their own projects, it would be interesting (or terrifying, depending on your perspective) to see where all this expenditure will ultimately lead in the future.
Follow Tom's Hardware on Google News , or add us as a preferred source , to get our latest news, analysis, & reviews in your feeds.
Get Tom's Hardware's best news and in-depth reviews, straight to your inbox.
Key considerations
- Investor positioning can change fast
- Volatility remains possible near catalysts
- Macro rates and liquidity can dominate flows
Reference reading
- https://www.tomshardware.com/tech-industry/artificial-intelligence/SPONSORED_LINK_URL
- https://www.tomshardware.com/tech-industry/artificial-intelligence/musk-purchases-third-building-at-memphis-site-to-expand-xais-training-capacity-to-a-monstrous-2-gigawatts-announcement-comes-days-after-musk-vows-to-have-more-ai-compute-than-everyone-else#main
- https://www.tomshardware.com
- Game the Halls: GeForce NOW Brings Holiday Cheer With 30 New Games in the Cloud
- SK hynix to build first U.S. packaging plant for HBM — plugs critical hole in U.S. supply chain, $3.9B investment challenges TSMC and reshapes AI supply chains
- Opt-In NVIDIA Software Enables Data Center Fleet Management
- Razer's Hanbo AIO coolers up to 70 percent off, drop as low as $29 in clearance deal — Chroma RGB CPU coolers fall to extreme budget territory, with 360mm model
- Game the Halls: GeForce NOW Brings Holiday Cheer With 30 New Games in the Cloud
Informational only. No financial advice. Do your own research.