Elon Musk plans ‘world’s most powerful’ supercomputer’ in Memphis
The supercomputer, backed by Elon Musk and powered by Nvidia's H100 GPUs, promises to be the new marvel in the AI sector. Elon Musk's AI company, xAI, plans to build the “world’s largest supercomputer” within Memphis, Tennessee, within the city limits. The project, dubbed the ‘Gigafactory of Compute’, is expected to be the largest investment in Memphis history and could boost the city's economy and technological prowess. The supercomputer will be powered by 100,000 Nvidia’S H100 GPUs, some of the most sought-after chips in the AI industry. If approved, it would be the biggest investment in the city. The selection of Memphis as a potential site was likely due to the rapid response of a swift response from the Greater Memphis Chamber and the involvement of the Tennessee Valley Authority (TVA). The project is still in its early stages, with several hurdles to overcome. However, details of the project remain scarce as technical specifications, performance benchmarks, and construction timelines remain under wraps.

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Memphis, Tennessee’s local government has revealed xAI’s intentions to build what they’re calling the “world’s largest supercomputer” within the city limits. Elon Musk’s ventures continue to push the boundaries of technology, and his artificial intelligence (AI) company, xAI, is no exception. In a recent development, Memphis, Tennessee, has emerged as a frontrunner to house what could be the world’s largest supercomputer, dubbed the “Gigafactory of Compute.”
This massive project promises a significant boost to the city’s economy and technological prowess, but it’s still in its early stages, with several hurdles to overcome. The Memphis Shelby County Economic Development Growth Engine (EDGE), Tennessee Valley Authority (TVA), and governing authorities hold the key to finalizing the project. If approved, it would be the largest investment in Memphis history. According to Memphis Mayor Paul Young, the city boasts “an ideal site, ripe for investment,” coupled with a skilled workforce that can “keep up with the pace required to land this transformational project, the Business Insider reported. The supercomputer itself is expected to be a technological marvel. It will be powered by 100,000 Nvidia’s H100 GPUs, currently some of the most sought-after chips in the AI industry, as reported by The Information.
This immense processing power comes at a hefty price tag, with estimates suggesting the project will cost billions of dollars. While the potential impact of the Gigafactory of Compute is undeniable, details remain scarce. Ted Townsend, president and CEO of the Greater Memphis Chamber, acknowledges the aggressive pace at which xAI is moving. He highlights Musk’s goal of having the supercomputer operational by Fall 2025, emphasizing, “The focus is, and will remain, to get this thing operating.” The tight timeframe contributes to the lack of specifics surrounding the project. Information on technical specifications, performance benchmarks, and construction timelines remains under wraps. Townsend even goes so far as to say he is “not at liberty to identify the location due to global security concerns.” However, a former Electrolux factory might be repurposed for the project, as reported by Memphis Business Journal.
Memphis’s selection as a potential site likely stems from a combination of factors. The city’s economic development team’s swift response is a key element. “In less than 90 days, the Greater Memphis Chamber’s economic development team moved at lightning speed to ensure Memphis would be in a position to be selected by xAI,” Townsend remarked during a press conference. Another crucial factor is the involvement of the Tennessee Valley Authority (TVA). Modern supercomputers, especially those using AI hardware, consume large amounts of energy. For the Gigafactory of Compute to operate, securing a reliable and powerful energy source from TVA is paramount. The news of this potential project comes amidst a backdrop of recent developments involving Musk, Nvidia, and AI. Earlier reports raised eyebrows when chips intended for Tesla were diverted to xAI. Musk responded by clarifying that Tesla lacked the immediate need for the chips, and storing them would have been inefficient.
Additionally, xAI successfully secured $6 billion in funding, including a significant personal investment from Musk himself, The Wall Street Journal reported. The Gigafactory of Compute has the potential to solidify Tennessee’s position as a leader in supercomputing. If completed, it would join Oak Ridge National Laboratory’s Frontier, the current holder of the “world’s fastest” title since 2022. However, with crucial approvals still pending and details shrouded in secrecy, it remains to be seen if Memphis will indeed become home to the world’s largest supercomputer.
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