Fortune reports that xAI and X signed a deal with local authorities to expand the site, which includes a $10 million tax discount on $700 million worth of hardware it plans to install as part of an expansion.
xAI joined the expansion project with X some nine months ago. While the AI startup has not disclosed its specific plans for the facility, it could potentially be used to accelerate production efforts for Grok 3, the next generation of its AI models, which Musk previously claimed would have been released at the end of 2024.
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X has used the Atlanta facility since 2014 — one of the few data centres to survive the social media platform's infrastructure purge when Musk took over. This latest deal will extend its stay for another decade.
The firm was previously denied the tax break after local officials were deadlocked. A second vote conducted this month resulted in victory for the Musk-owned firms.
xAI has sought to rapidly expand its IT infrastructure to push its Grok training efforts as Musk eyes competing with OpenAI.
The set-to-be-expanded Atlanta facility adds to its ever-growing Colossus supercomputer cluster in Memphis, Tennessee, which is set to double its 100,000 GPUs — a number that could reach more than one million GPUs, according to local authorities.
While Musk is building out his companies’ AI infrastructure, he attacked rival OpenAI last week claiming it doesn’t have the money to support the $500 billion Stargate Project alongside SoftBank, Microsoft, Oracle, and MGX.
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