xAI buys third building for world's most powerful AI compute

xAI has acquired a third building to expand its AI infrastructure, boosting total training compute to nearly 2 gigawatts. This setup includes a $400 million Tesla Megapack energy storage system and will pair with over $30 billion in GPUs once fully built. The project positions it as the most powerful AI compute facility globally, though future developments may dwarf it.

xAI's latest acquisition marks a significant step in scaling its artificial intelligence capabilities. The company has purchased a third building at its site, which will elevate the total training compute power to nearly 2 gigawatts—the highest in the world.

This expansion integrates a $400 million Tesla Megapack energy storage system, designed to support the demanding operations of advanced AI training. When fully realized, the facility will incorporate over $30 billion worth of graphics processing units (GPUs), underscoring the massive investment in computational resources.

As noted by observer Sawyer Merritt, 'What a site.' This development highlights the rapid growth in AI infrastructure, where current feats are expected to pale in comparison to upcoming innovations. The project's scale reflects the intensifying competition in AI, with xAI aiming to lead in compute capacity.

No specific timeline for completion was detailed, but the acquisition suggests imminent progress toward operationalizing this powerhouse.

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Elon Musk announces joint Tesla-xAI Digital Optimus AI project, aka Macrohard

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Elon Musk revealed on March 11, 2026, a collaborative Tesla-xAI initiative called Macrohard or Digital Optimus, a real-time AI system to emulate software company operations and automate computer tasks. Powered by xAI's Grok model directing Tesla hardware processing of screen video and inputs, it follows Tesla's $2 billion investment in xAI amid lawsuits, internal shifts, and a SpaceX acquisition.

SpaceX has acquired Elon Musk's AI startup xAI in an all-stock deal, creating a combined entity valued at approximately $1.25 trillion. The merger integrates AI technologies with SpaceX's rockets, satellite internet, and communications systems. This move aims to develop vertically integrated innovations, including potential space-based AI data centers.

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Building on initial Megapack installations last month, Tesla's Cortex 2 AI datacenter at Giga Texas is advancing rapidly, with the first 250MW portion expected to activate in April. Key for Optimus robot development, the site features progress on Megapack and chiller installations, including temporary units for accelerated startup, as confirmed by Elon Musk.

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