Elon Musk Plans Gigafactory of Compute: The World’s Largest Supercomputer

Elon Musk is embarking on a groundbreaking project to construct the world's largest supercomputer, named the Gigafactory of Compute, in Memphis, Tennessee. This monumental endeavour promises to significantly elevate the city's technological landscape and generate numerous employment opportunities.

The Gigafactory of Compute will be powered by Nvidia's H100 GPUs, renowned for their exceptional performance in artificial intelligence applications. According to the Greater Memphis Chamber, Musk's company, xAI, has been collaborating with local officials since March to turn this ambitious vision into reality. The project is targeted to go live by fall 2025, pending necessary approvals.

Ted Townsend, President and CEO of the Greater Memphis Chamber, told Business Insider that although the timeline remains flexible, efforts around xAI are progressing "very aggressively" to meet the proposed deadlines. Musk had previously informed xAI investors of his intention to have the supercomputer operational by fall 2025.

This multibillion-dollar investment is poised to create hundreds of jobs and attract substantial investment, aligning with Musk's strategy to advance AI technology and compete with major tech players like OpenAI, Google, and Meta. The project's approval is still pending from the Memphis Shelby County Economic Development Growth Engine, the Tennessee Valley Authority, and other regulatory bodies. Discussions are underway regarding potential tax breaks and incentives to attract xAI to Memphis. "We have work to do, make no mistake," Townsend remarked. "But we're incredibly grateful for the interest from Elon, his executives, and the xAI team."

The exact location of the facility remains undisclosed for security reasons, but reports indicate it might occupy the former Electrolux Memphis facility, as noted by the Memphis Business Journal. The Greater Memphis Chamber became involved in the project around 90 days ago, with significant efforts accelerating since then.

Approval of the Gigafactory of Compute would position Memphis at the forefront of AI innovation, marking a historic investment in the city's future. To support the project, xAI recently announced a $6 billion Series B funding round, with Musk personally contributing $750 million, bringing the company's valuation to over $24 billion. Additionally, Musk has redirected Nvidia chips initially intended for Tesla to xAI, prioritizing this AI venture.

"We had an ideal site, ripe for investment," said Memphis Mayor Paul Young. "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."

Interestingly, Musk's interest in Tennessee aligns with other tech leaders' moves to the state. Earlier this year, Oracle Corp. Chairman Larry Ellison, a friend of Musk and former Tesla board member, revealed plans to relocate Oracle’s corporate headquarters to Nashville. Moreover, Amazon.com Inc. has established a significant presence in Nashville with a large number of employees.

If approved, the Gigafactory of Compute will not only be a landmark project for Memphis but also a pivotal development in the global AI landscape, underscoring Musk's commitment to pushing the boundaries of technological innovation.