Welcome back to the Elon Musk Podcast. This is a show where we discuss the critical crossroads that shape SpaceX, Tesla X, The Boring Company, and Neuralink. And I'm your host, Will Walden. Elon Musk's artificial intelligence startup XAI is set to establish a supercomputer facility at the former Electrolux site in Memphis, TN. This new gigafactory of compute will be among the largest AI
supercomputers globally. Now, Memphis officials led by 10 Townsend, president of the Greater Memphis Chamber, have been in discussions with Elon Musk and his team since March to bring this major investment to the city. The announcement was made during a press briefing where Townsend revealed that the factory could potentially become the largest multibillion dollar investment in Memphis's history. The city is considering offering tax breaks and other incentives
to XAI. Those specific cost estimates and job creation numbers will be detailed in later dates. Now in May, Musk pitched the idea of his supercomputer to investors, describing it as essential for powering XA is chat bot croc. He outlined a goal for the supercomputer to be operational by next fall and mentioned a possible partnership with Oracle for its construction.
This pitch was part of XA is successful $6 billion Series B fund round, which attracted significant investors such as Anderson Horowitz, Sequoia Capital, It's Saudi Arabia's public investment fund. Now the new AI project aims to leverage advanced technology and significant computing power to enhance artificial intelligence capabilities.
Now Memphis was chosen for this groundbreaking project due to its strategic advantages and the proactive efforts of local officials to facilitate the development. And at a video press conference, Townsend emphasized that the project represents the city's largest capital investment by a new to market company, although he did not specify the exact location. But the former Electrolux facility at 3231 Paul Lowry Rd. is presumed to be the site.
This facility was acquired by Phoenix Investors for $35 million in December. Memphis Mayor Paul Young expressed enthusiasm for the project. He said the city's history of innovation and its readiness to embrace transformative initiatives underscores the city's commitment to supporting cutting edge technology and
fostering economic growth. Now, Doug McGowan, president and CEO of Memphis Light, Gas and Water, assured that the utility company would meet XA is needs without jeopardizing the local power grid or water resources. The infrastructure is ready to support such a massive technological endeavor and the XAI project is still pending approval from county development authorities, the Tennessee Valley Authority and other
regulatory bodies. And the swift coordination among various stakeholders has positioned Memphis favorably for this significant investment. Now, the Electrolux site, proximity to other state certified industrial properties and the TVA Allen Fossil Fuel Plant, which is undergoing redevelopment, add strategic value to the location.
The area's infrastructure and state certification out of the Tennessee Department of Economic and Community Development Select Tennessee initiative, making an attractive site for corporate investment. Now. The former Electrolux plant closed in 2022 after being announced foreclosure in January of 2019. A strategic location near other industrial sites and also infrastructure is a key, including the TVA Allen Fossil Flio plant. Positioned as a prime candidate
for this facility. The TVA Allen Fossil Plant redevelopment is expectorated to generate significant economic benefits for the region. The demolition of the plant, scheduled to be completed by 2025, and ongoing site remediation efforts show that the area is ready for new industrial developments in. The exact number of jobs and total capital investment an XAI supercomputer will bring to
Memphis remains undetermined. However, the project scale indicates a substantial economic impact, potentially rivaling other major developments like Saint Jude Children's Research Hospital and also FedEx in the region. Now, the project's completion is anticipated later this year, pending necessary approvals. And this timeline shows that Elon is urgent and it's a high stakes game out there, developing one of the world's most advanced AI supercomputers.
Now, a supercomputer like the one proposed for XAI is designed to process vast amounts of data and very high speeds, crucial for advanced AI applications. Tennessee already hosts the world's fastest supercomputer, known as Frontier at Oak Ridge National Laboratory, which cost $600 million and was built by Hewlett Packard Enterprise and AMD. With the addition of XAI supercomputer, Tennessee could become home to two of the world's most powerful
supercomputing facilities. This development shows that the state's growing in prominence in a high performance computing and AI research. Now, XAI was founded by Elon in July of 2023, and they're going to push the boundaries of AI technology. According to Musk, Musk's involvement in the project, alongside his leadership roles at Tesla and SpaceX bring significant attention and
credibility to this endeavor. Now Elon's addition to Twitter known as X Now and his focus on AI through XAI shows that he's getting more closely involved with the AI business. First Tesla with their AI, Now XAI and Grok and X or Twitter. It's a prioritized business strategy for Elon now. And the establishment of XAI supercomputer facility in Memphis is a significant milestone in AI tech and also for the economic development for the city.
It'll bring in hundreds of jobs, maybe thousands of jobs. And also, the project's success will likely have far reaching impacts on local and also global technology, positioning Memphis as a key player in the AI revolution. Hey, thank you so much for listening today. I really do appreciate your support. If you could take a second and hit the subscribe or the follow button on whatever podcast platform that you're listening on right now, I greatly appreciate it.
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