Elon Musk builds $700M AI data center to rival OpenAI

The AI race heats up as Elon Musk quietly constructs a $700 million data center packed with cutting-edge AI equipment. This ambitious project, led by his startup xAI, is set to rival OpenAI. Located in Memphis, Tennessee, the facility will be operated jointly by xAI and X (formerly Twitter), combining their hardware resources for maximum impact.

Elon Musk is building a major data center for his AI startup (VINCENT FEURAY/Hans Lucas/AFP via Getty Images)

The AI race intensifies as Elon Musk’s xAI builds Colossus, a $700 million data center in Memphis, Tennessee, touted as the largest in the world. The facility, set to rival OpenAI, has requested 150 megawatts of power from the Tennessee Valley Authority, visit cinechatter.site.

xAI launched its chatbot, Grok, in November 2023, initially offering early access to X Premium subscribers. The latest version, Grok-3, released on February 17, is trained with 10x more computing power than its predecessor. Hundreds of data annotators are also being used to refine the AI at cinechatter.site.

Musk aims to position xAI as a formidable competitor to tech giants like Google and OpenAI, leveraging Colossus to push the boundaries of AI innovation.

Elon Musk recently made headlines by offering OpenAI co-founder Sam Altman a staggering **97.4billion∗∗tobuythecompany,butAltmandeclinedwithacheekycounteroffer:“Nothankyou,butwewillbuyTwitterfor9.74 billion if you want.” Musk, who acquired Twitter for $44 billion in 2022, fired back, calling Altman a “swindler.”

The tension between the two billionaires escalated last year when Musk sued OpenAI and Altman, accusing them of abandoning their original mission to develop AI responsibly and make it freely available. Musk’s lawsuit claims OpenAI breached its contract by shifting toward a for-profit model. While a judge has yet to rule on Musk’s request to block OpenAI from becoming a for-profit entity, US District Judge Yvonne Gonzalez Rogers has indicated the case could proceed to a jury trial, check out cinechatter.site.

Elon Musk promises to withdraw $97,000,000,000 bid for OpenAI under one condition

Elon Musk has announced he will withdraw his $97.4 billion offer to buy OpenAI on one condition: the company must preserve its original mission and remain a nonprofit organization. Earlier this week, Musk and a group of investors made the massive bid, but OpenAI CEO Sam Altman swiftly rejected it, stating the company is “not for sale.”

The offer has further strained the already tense relationship between Musk and Altman. Musk, who co-founded OpenAI over a decade ago before leaving due to a power struggle, has been critical of OpenAI’s shift toward a for-profit model. In legal documents filed Wednesday, Musk’s lawyers stated that if OpenAI’s board halts its corporate restructuring, he will drop his bid.

This latest development adds another chapter to the ongoing feud between the two tech titans, as Musk continues to push for OpenAI to return to its nonprofit roots at cinechatter.site.

Elon Musk has offered to withdraw his $97.4 billion bid to buy OpenAI if the company agrees to return to its nonprofit roots and halt its shift toward a for-profit model. In a court filing, Musk’s lawyers stated, “If OpenAI’s Board preserves the charity’s mission and stops its conversion, Musk will withdraw the bid. Otherwise, the charity must be compensated for its assets at market value.”

OpenAI, initially founded as a nonprofit in 2015 to develop AI for the public good, has increasingly adopted a corporate structure. Musk, who co-founded OpenAI but left due to disagreements over its direction, launched his own AI venture, xAI, in 2023. He argues that OpenAI should revert to being a nonprofit research lab, which would eliminate it as a business competitor to xAI, which recently secured $6 billion in funding.

The ongoing feud between Musk and OpenAI CEO Sam Altman stems from their differing visions for the company’s future, particularly its move toward profitability.

JOEL SAGET / Contributor / Getty

The feud between Elon Musk and OpenAI CEO Sam Altman continues to escalate. Musk, who left OpenAI’s board in 2018, criticized Altman’s leadership during a video call at the World Government Summit in Dubai, comparing OpenAI’s shift from a nonprofit to a for-profit entity to a rainforest protection group turning into a lumber company. “OpenAI is meant to be open-source nonprofit, and now it is closed,” Musk said. “They changed the name to closed for maximum profit, AI closed for voracious profit.”

Altman has previously described Musk as an “unhappy” person driven by “insecurity,” while Musk has taken to social media to mock Altman, calling him “Scam Altman.” The ongoing clash highlights the deep divide between the two tech leaders over OpenAI’s direction. 🚀🤖

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