tech
Musk’s xAI is being sued over its data center generators — now it’s buying $2.8B more
Elon Musk's xAI said it will buy $2.8 billion worth of natural gas turbines over the next three years, according to SpaceX's IPO filing.
TL;DR
- xAI is being sued by the NAACP for operating unregulated gas turbines that pollute the air near its Memphis, Tennessee data center.
- The company plans to buy an additional $2.8 billion worth of turbines for its AI infrastructure over the next three years.
- A $2 billion deal is specifically for "mobile gas turbines," the same type xAI is being sued over.
- xAI claims it can operate turbines for up to a year without permits due to their "mobile" status, exploiting a discrepancy in regulations.
- Federal regulations and the EPA consider these turbines subject to air-pollution regulations, even if on trailers.
- SpaceX's IPO filing acknowledges that injunctions or rescinded permits would "adversely affect" its AI business.