Market Chatter: xAI's Cheap, Fast Data Center Build-Out Comes With Trade-Offs

MT Newswires Live01:42

SpaceX said in its draft IPO prospectus that xAI brought the first two chip clusters at its second data center online at about a quarter of the typical cost, but the speedy data center build-out has also resulted in reliability problems due to xAI's temporary power and cooling setups, The Information reported Tuesday.

At Macrohard, xAI's data center in Memphis, the company is still primarily using electricity from nearby mobile gas turbines and Tesla (TSLA) Megapack batteries, and it's relying on over 100 mobile chillers to keep graphics processing units cool, the report said, citing a person involved in the project.

xAI didn't immediately reply to a request for comment from MT Newswires.

(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)

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