xAI's Colossus 2 supercomputer integrates $375 million in Tesla Megapacks

Elon Musk met with SpaceX's Brent at midnight to oversee xAI's new Colossus 2 supercomputer, set to become the world's largest and most powerful data center. The facility is incorporating over $375 million worth of Tesla Megapacks for sustainable energy to support advanced AI workloads.

On December 10, 2025, at midnight, Elon Musk convened with Brent from SpaceX at xAI's newly developed Colossus 2 supercomputer. According to Tesla commentator Sawyer Merritt, this meeting highlighted the project's progress, positioning Colossus 2 as the largest and most powerful data center globally.

The supercomputer is integrating over $375 million in Tesla Megapacks, Tesla's large-scale battery storage systems. These Megapacks are designed to provide sustainable energy solutions, powering the intensive computational demands of advanced AI workloads. This integration underscores a strategic collaboration between xAI and Tesla, emphasizing energy efficiency in high-performance computing.

Colossus 2 combines scalable compute resources with leading-edge hardware, aiming to enhance operations in data centers. The project is expected to accelerate AI model training capabilities, enabling faster innovation in enterprise and research applications. As Sawyer Merritt noted in his post: "Elon meeting with @BrentM_SpaceX at midnight at xAI’s new Colossus 2 supercomputer, which will be the largest and most powerful data center in the world. Over $375 million worth of Tesla Megapacks are being installed there."

This development signals broader opportunities in AI infrastructure, where sustainable energy plays a key role in supporting scalable and efficient systems. No specific location details for the facility were provided in the sources.

Makala yanayohusiana

Elon Musk announces SpaceX-xAI merger at podium, with screen showing orbital AI data centers, Starships, and Mars visions.
Picha iliyoundwa na AI

SpaceX acquires xAI to power AI with space data centers

Imeripotiwa na AI Picha iliyoundwa na AI

Elon Musk announced on February 2, 2026, that his SpaceX company has acquired his AI startup xAI, aiming to build orbital data centers to meet surging electricity demands for artificial intelligence. The merger integrates AI, rockets, and satellite technology to create a vertically integrated innovation engine. Musk envisions this enabling advancements like Moon bases and Mars colonization.

Following the initial announcement of its Colossus 2 supercomputer, xAI has shared a photo of approximately 420 Tesla Megapacks—valued at $400 million—installed at the Memphis facility, marking the world's largest energy storage system.

Imeripotiwa na AI

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.

Elon Musk's xAI startup disclosed a $1.46 billion net loss for the third quarter of 2025, up from $1 billion earlier in the year, while outlining ambitions to develop AI for powering Tesla's Optimus humanoid robots. The company burned through $7.8 billion in cash over the first nine months, supported by over $40 billion in equity funding. This development raises questions in ongoing shareholder lawsuits accusing Musk of breaching fiduciary duties at Tesla.

Imeripotiwa na AI

Tesla has disclosed a $2 billion investment in Elon Musk's AI company xAI, part of its Series E funding round, despite ongoing shareholder lawsuits and a rejected nonbinding vote. The move aims to foster AI collaborations under Tesla's Master Plan Part IV. The investment, made on market terms, is expected to close in the first quarter of 2026.

Tech leaders like Elon Musk and Jeff Bezos propose launching data centres into orbit to power AI's massive computing needs, but experts highlight formidable hurdles. From vast solar panels and cooling issues to radiation risks, building such facilities in space remains far off. Projects like Google's 2027 prototypes show early interest, yet production-scale viability is distant.

Imeripotiwa na AI

Elon Musk promised a free Tesla Cybertruck to an xAI engineer who could complete a GPU training run within 24 hours, and the engineer succeeded. The story, shared by former xAI staffer Sulaiman Ghori, highlights Musk's emphasis on rapid execution at his companies. This incentive underscores the high-stakes culture at xAI, where speed is paramount.

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