Like Tesla, xAI has deployed a significant quantity of GPUs, with more than 200,000 at the Colossus supercomputer in Memphis. Musk hopes to expand Colossus to one million GPUs, and xAI has purchased a site for a second data center in Memphis.

Elon Musk's xAI, even more than rival AI startup leaders like OpenAI and Anthropic, is a cash incinerator — and despite the company's soaring valuations, it has little prospect of building significant revenue,