Elon Musk’s Colossus 2 to double Nvidia GPUs by year-end

Elon Musk’s xAI Colossus 2 in Memphis aims to double its Nvidia GPU count to 1.44 million by year-end, reflecting huge demand, infrastructure hurdles, and major client deals.

Elon Musk has unveiled ambitious expansion plans for xAI’s Colossus 2 AI data center in Memphis. Currently, the facility operates 110,000 Nvidia GB200 chips and 440,000 GB300 chips. Musk announced that 220,000 additional GB300 chips will go online next week, with two more waves of 220,000 chips each set for November and late December. If all deployments proceed as scheduled, the total GPU count could reach about 1.44 million by year-end, more than doubling the current inventory. This expansion underscores the surging demand for Nvidia’s Blackwell chips and highlights the ongoing challenges related to power supply and infrastructure. The project’s capital cost is expected to rise from $35.8 billion to $58 billion. Major clients, including Google and Anthropic, have secured compute access contracts, with Google agreeing to pay $920 million per month for 110,000 GPUs. The rapid scaling positions Colossus 2 as one of the world’s largest and most powerful AI clusters.