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Elon Musk's xAI says it will build 'world's largest supercomputer' in Memphis · Elon Musk Podcast

• 0:00
  Welcome back to the Elon Musk Podcast.
• 0:02
  This is a show where we discuss the critical crossroads that
• 0:05
  shape SpaceX, Tesla X, The Boring Company, and Neuralink.
• 0:09
  And I'm your host, Will Walden. Elon Musk's artificial
• 0:13
  intelligence startup XAI is set to establish a supercomputer
• 0:18
  facility at the former Electrolux site in Memphis, TN.
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  This new gigafactory of compute will be among the largest AI
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  supercomputers globally. Now, Memphis officials led by 10
• 0:30
  Townsend, president of the Greater Memphis Chamber, have
• 0:33
  been in discussions with Elon Musk and his team since March to
• 0:37
  bring this major investment to the city.
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  The announcement was made during a press briefing where Townsend
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  revealed that the factory could potentially become the largest
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  multibillion dollar investment in Memphis's history.
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  The city is considering offering tax breaks and other incentives
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  to XAI. Those specific cost estimates
• 0:55
  and job creation numbers will be detailed in later dates.
• 1:00
  Now in May, Musk pitched the idea of his supercomputer to
• 1:03
  investors, describing it as essential for powering XA is
• 1:07
  chat bot croc. He outlined a goal for the
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  supercomputer to be operational by next fall and mentioned a
• 1:12
  possible partnership with Oracle for its construction.
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  This pitch was part of XA is successful $6 billion Series B
• 1:21
  fund round, which attracted significant investors such as
• 1:25
  Anderson Horowitz, Sequoia Capital, It's Saudi Arabia's
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  public investment fund. Now the new AI project aims to
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  leverage advanced technology and significant computing power to
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  enhance artificial intelligence capabilities.
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  Now Memphis was chosen for this groundbreaking project due to
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  its strategic advantages and the proactive efforts of local
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  officials to facilitate the development.
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  And at a video press conference, Townsend emphasized that the
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  project represents the city's largest capital investment by a
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  new to market company, although he did not specify the exact
• 1:57
  location. But the former Electrolux
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  facility at 3231 Paul Lowry Rd. is presumed to be the site.
• 2:05
  This facility was acquired by Phoenix Investors for $35
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  million in December. Memphis Mayor Paul Young
• 2:12
  expressed enthusiasm for the project.
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  He said the city's history of innovation and its readiness to
• 2:19
  embrace transformative initiatives underscores the
• 2:22
  city's commitment to supporting cutting edge technology and
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  fostering economic growth. Now, Doug McGowan, president and
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  CEO of Memphis Light, Gas and Water, assured that the utility
• 2:32
  company would meet XA is needs without jeopardizing the local
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  power grid or water resources. The infrastructure is ready to
• 2:40
  support such a massive technological endeavor and the
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  XAI project is still pending approval from county development
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  authorities, the Tennessee Valley Authority and other
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  regulatory bodies. And the swift coordination among
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  various stakeholders has positioned Memphis favorably for
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  this significant investment. Now, the Electrolux site,
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  proximity to other state certified industrial properties
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  and the TVA Allen Fossil Fuel Plant, which is undergoing
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  redevelopment, add strategic value to the location.
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  The area's infrastructure and state certification out of the
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  Tennessee Department of Economic and Community Development Select
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  Tennessee initiative, making an attractive site for corporate
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  investment. Now.
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  The former Electrolux plant closed in 2022 after being
• 3:24
  announced foreclosure in January of 2019.
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  A strategic location near other industrial sites and also
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  infrastructure is a key, including the TVA Allen Fossil
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  Flio plant. Positioned as a prime candidate
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  for this facility. The TVA Allen Fossil Plant
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  redevelopment is expectorated to generate significant economic
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  benefits for the region. The demolition of the plant,
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  scheduled to be completed by 2025, and ongoing site
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  remediation efforts show that the area is ready for new
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  industrial developments in. The exact number of jobs and
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  total capital investment an XAI supercomputer will bring to
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  Memphis remains undetermined. However, the project scale
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  indicates a substantial economic impact, potentially rivaling
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  other major developments like Saint Jude Children's Research
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  Hospital and also FedEx in the region.
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  Now, the project's completion is anticipated later this year,
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  pending necessary approvals. And this timeline shows that
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  Elon is urgent and it's a high stakes game out there,
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  developing one of the world's most advanced AI supercomputers.
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  Now, a supercomputer like the one proposed for XAI is designed
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  to process vast amounts of data and very high speeds, crucial
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  for advanced AI applications. Tennessee already hosts the
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  world's fastest supercomputer, known as Frontier at Oak Ridge
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  National Laboratory, which cost $600 million and was built by
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  Hewlett Packard Enterprise and AMD.
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  With the addition of XAI supercomputer, Tennessee could
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  become home to two of the world's most powerful
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  supercomputing facilities. This development shows that the
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  state's growing in prominence in a high performance computing and
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  AI research. Now, XAI was founded by Elon in
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  July of 2023, and they're going to push the boundaries of AI
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  technology. According to Musk, Musk's
• 5:17
  involvement in the project, alongside his leadership roles
• 5:20
  at Tesla and SpaceX bring significant attention and
• 5:23
  credibility to this endeavor. Now Elon's addition to Twitter
• 5:29
  known as X Now and his focus on AI through XAI shows that he's
• 5:33
  getting more closely involved with the AI business.
• 5:37
  First Tesla with their AI, Now XAI and Grok and X or Twitter.
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  It's a prioritized business strategy for Elon now.
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  And the establishment of XAI supercomputer facility in
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  Memphis is a significant milestone in AI tech and also
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  for the economic development for the city.
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  It'll bring in hundreds of jobs, maybe thousands of jobs.
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  And also, the project's success will likely have far reaching
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  impacts on local and also global technology, positioning Memphis
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  as a key player in the AI revolution.
• 6:15
  Hey, thank you so much for listening today.
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  I really do appreciate your support.
• 6:19
  If you could take a second and hit the subscribe or the follow
• 6:22
  button on whatever podcast platform that you're listening
• 6:24
  on right now, I greatly appreciate it.
• 6:26
  It helps out the show tremendously and you'll never
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  miss an episode. And each episode is about 10
• 6:32
  minutes or less to get you caught up quickly.
• 6:35
  And please, if you want to support the show even more, go
• 6:38
  to Patreon stage Zero. And please take care of
• 6:43
  yourselves and each other. And I'll see you tomorrow.