AI startup xAI is considering building a second data center, after setting up a large cluster in Memphis, Tennessee, The Information reports.
At the same time, Bloomberg reports that Elon Musk's company is in advanced talks with Dell Technologies to buy $5 billion in AI servers.
The Nvidia GB200 compute tray contains two Nvidia Grace CPUs and four Blackwell GPUs. The Memphis 'Colossus' supercomputer was built using both Dell and Supermicro servers, with a reported reported 100,000 Nvidia GPUs.
Musk in October said that he planned to increase the site to 200,000 GPUs, and then in December changed it to one million planned GPUs.
To help fund the developments, xAI is said to be in talks to raise $10bn in a round that would value xAI at $75bn.
Bloomberg reports that the company is seeking funds from existing investors Sequoia Capital, Andreessen Horowitz, and Valor Equity Partners.
Alongside the buildout and fundraise, Musk is seeking to disrupt rival OpenAI's plans to become for-profit, key to funding its $500bn Stargate effort.
