“Cross-border integration” of Musk's business empire: Tesla (TSLA.US) batteries help xAI supercomputers

The Zhitong Finance App learned that Elon Musk's XAI is using Tesla (TSLA.US) Megapack batteries to support its “Colossus” supercomputer in Memphis. This is another example of overlapping interests between Musk companies.

The Greater Memphis Chamber of Commerce (Greater Memphis Chamber) said in a press release on Wednesday that the system has added Megapack batteries to help it cope with power outages and surges in demand. The commercial organization said the xAI project was recently connected to a new substation that will provide 150 megawatts of electricity.

Musk's artificial intelligence startup moved quickly to build the facility in two phases and was criticized by environmental groups for using gas turbines. With the completion of the first phase of the project, some of the turbines will be dismantled.

The use of the 150 MW Megapack also highlights the collaboration between Musk's five companies. According to documents recently submitted by Tesla, XAI spent around $230 million on MegaPacks from January 2024 to February of this year. Musk also heads SpaceX, Neuralink, and The Boring Company.

While Tesla is famous for its electric cars, it's more than just a car company. The company's mission is to “accelerate the world's transition to sustainable energy,” and its energy sector is seen as a growing business at a time when car sales are declining.

Utility-grade batteries like Megapack need to store electricity from wind and solar energy, but they can also be lucrative. By storing surplus electricity when prices and demand are lower, battery owners can sell electricity back to the grid when prices rise.