Elon Musk Says xAI Purchased Third Building For Massive AI Expansion As Company Takes On OpenAI, Anthropic: Property Name Takes Dig At Microsoft

by | Dec 31, 2025 | General

On Tuesday, Elon Musk said his artificial intelligence startup xAI has acquired a third building as it races to dramatically scale computing power and challenge leading AI rivals.

xAI Adds Third Facility To Scale AI Infrastructure

Musk said that xAI has purchased a third building to expand its AI infrastructure, pushing the company’s planned compute capacity toward nearly 2 gigawatts.

“xAI has bought a third building called MACROHARDRR,” Musk wrote on X, a name widely seen as a tongue-in-cheek reference to Microsoft Corp (NASDAQ:MSFT), a major backer of OpenAI.

Musk did not disclose the building’s exact location. “Will take @xAI training compute to almost 2GW,” he continued.

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The move highlights xAI’s aggressive push to train larger and more advanced AI models capable of competing with OpenAI’s ChatGPT and Anthropic’s Claude.

Colossus Supercomputer Set For Massive GPU Expansion

The new facility is planned outside Memphis, Tennessee, where xAI operates its flagship supercomputer cluster known as Colossus, reported Reuters (via The Information).

The system is already touted as the world’s largest AI supercomputer.

According to the report, xAI plans to expand Colossus to house at least 1 million graphics processing units, a scale that would place it among the most powerful AI training systems globally.

The report added that xAI expects to begin converting the newly acquired warehouse into a data center in 2026. Both the new site and a planned “Colossus 2” facility are located near a natural gas power plant that xAI is building, along with access to other energy sources.

Meanwhile, last month, it was reported that xAI is in late-stage discussions to secure $15 billion in fresh equity funding, valuing the company at about $230 billion.

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