SpaceXAI is scaling its Colossus supercomputer cluster in Memphis, which reached 1 GW of AI compute capacity by mid-2026. The facility includes Colossus 1, Colossus 2, and Minihard, utilizing Nvidia GPUs to train Grok models and support external clients.
The company secured major rental agreements for its compute capacity. Anthropic reportedly pays up to $1.25 billion per month for access to Colossus 1, while Google signed a deal for 110,000 GPUs at $920 million monthly, starting in October 2026.
SpaceX acquired xAI earlier in 2026 for $250 billion, rebranding the operations as SpaceXAI. The entity now operates in the neocloud market, providing AI compute capacity to external companies.
To power the site, SpaceXAI deployed 69 temporary natural gas turbines. Following local environmental concerns, the company committed to removing these by July 2027 and replacing them with a permanent 1.2 GW gas facility.
Tesla installed approximately 720 Megapack units at the Colossus 2 site, creating a grid battery with 2.8 to 3.3 GWh of capacity. The Tennessee Valley Authority approved the connection in August 2026, with the deployment costing $1 billion.
