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Elon Musk's new Atlanta data center for xAI has $700 million in AI equipment and 12,000 GPUs

Feb 20, 2025 - businessinsider.com
xAI, Elon Musk's AI startup, is expanding its data center operations with a new facility in Atlanta, which will support the X platform. The Atlanta data center will house approximately 12,448 Nvidia GPUs, primarily Hopper generation H100s, and is valued at $700 million. The facility is being developed in partnership with X, which is contributing 90% of the hardware. The data center will be used to develop and train AI products, including large language models and semantic search products for X. The project is expected to have an economic impact of over $241 million and will maintain 24 jobs at the facility.

The Atlanta facility is part of Musk's strategy to position xAI as a competitor to major tech companies like OpenAI and Google. xAI's Memphis data center, known as Colossus, is reportedly the largest in the world and requires significant resources, including 150 megawatts of power. xAI has been actively hiring data annotators to train its chatbot, Grok, which was initially launched on X's platform. Musk's efforts to compete with OpenAI include a failed $97.4 billion bid to acquire the nonprofit controlling OpenAI, highlighting his ambition to challenge established AI giants.

Key takeaways:

  • xAI and X are collaborating to establish a large data center in Atlanta, equipped with approximately 12,000 GPUs and $700 million worth of equipment.
  • The Atlanta facility is designed to support AI computation and will be used to develop and train artificial intelligence products, including large language models and semantic search products for the X platform.
  • xAI's Memphis data center, known as Colossus, is reportedly larger than the Atlanta facility and has been described by Elon Musk as the largest data center in the world.
  • The partnership between X and xAI involves significant hardware contributions, with X providing 90% of the equipment and xAI contributing 10%, and the project is expected to have an economic impact of over $241 million.
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Comments (1)

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Huge data center coming to Limerick Pennsylvania. The 1000 acres is adjacent to Constellation Nuclesr Plant and the Schuylkill River. Buildings planned to be 120 feet tall. This will be the largest center in the world. Why no coverage from this periodicals.