Elon Musk's xAI is leveraging Tesla's (TSLA, Financial) Megapack batteries to power its "Colossus" supercomputer in Memphis. This collaboration highlights the synergy between Musk's various ventures. The Greater Memphis Chamber announced that the system now includes Megapack batteries to manage power outages and surges in demand. The xAI project has recently connected to a new substation providing 150 megawatts of power.
Musk's AI startup has faced environmental criticisms for its use of natural gas turbines during the facility's construction. However, with the completion of the first phase, some turbines will be removed. The integration of the 150-megawatt Megapack underscores the cooperation among Musk's five companies. Tesla's recent filings reveal that xAI spent approximately $230 million on Megapacks from January 2024 to February 2023.
While Tesla is renowned for its electric vehicles, it is also committed to accelerating the world's transition to sustainable energy. Amid declining car sales, its energy division is becoming increasingly significant. Utility-scale batteries like Megapack are essential for storing wind and solar energy, offering substantial profit opportunities by selling stored energy back to the grid during peak times.
