Elon Musk’s xAI buys third building to scale AI compute capacity

Elon Musk said on Tuesday, December 31, that his artificial intelligence startup xAI has acquired a third building to expand its infrastructure, as the company looks to scale up training capacity to nearly 2 gigawatts of compute power, as reported by Reuters.

The move underlines xAI’s aggressive push to compete more directly with AI leaders such as OpenAI’s ChatGPT and Anthropic’s Claude by training more advanced models. The company’s supercomputer cluster in Memphis, Tennessee, known as Colossus, is positioned as the largest in the world.

Musk informed on X that xAI had bought a third building named MACROHARDRR, a term seen as a possible play on Microsoft’s name, though he did not disclose the location of the property.

xAI has bought a third building called MACROHARDRR. Will take @xAI training compute to almost 2GW.

Try @Grok. Download latest app.

— Elon Musk (@elonmusk) December 30, 2025

The Information, which first reported the development citing property records and a person familiar with the project, said the third supersized data centre is planned outside Memphis.

According to the report, xAI is planning to expand its Colossus supercomputer to accommodate at least one million graphics processing units. The company is expected to begin converting the newly acquired warehouse into a data centre in 2026.

The Information added that both the new data centre and Colossus 2 are located close to a natural gas power plant being built by xAI in the area, along with access to other power sources.

The rapid expansion of AI infrastructure has, however, attracted criticism from environmental activists, who have raised concerns about the large amounts of energy consumed by data centres.