Elon Musk Plans to Build World's Largest Supercomputer in Memphis

Elon Musk's AI company, xAI, is planning to construct the world's largest supercomputer in Memphis, Tennessee. The project, known as the 'Gigafactory of Compute,' is still in its early stages and requires approval from the Memphis Shelby County Economic Development Growth Engine (EDGE), Tennessee Valley Authority (TVA), and governing authorities. The supercomputer will be powered by 100,000 Nvidia's H100 GPUs and is expected to cost billions of dollars. The goal is to have the supercomputer operational by Fall 2025. The specific location and technical details of the project remain undisclosed due to security concerns. Memphis's selection as a potential site is attributed to the swift response of the city's economic development team and the involvement of TVA to secure a reliable and powerful energy source. If completed, the Gigafactory of Compute has the potential to solidify Tennessee's position as a leader in supercomputing. [e66ea12c]

In addition to the supercomputer project in Memphis, Elon Musk's AI company, xAI, is also planning to invest heavily in AI and cloud technology in Sweden and Wisconsin. In Sweden, Microsoft is investing $3.2 billion to expand its data center capacity, deploying 20,000 new GPUs to support AI and machine learning. The investment comes three years after the company inaugurated its first Azure region in Sweden. Sweden is strategically important for Microsoft due to its abundant supply of renewable energy, favorable climate, reliable power infrastructure, and commitment to sustainability. The expansion aligns with Microsoft's commitment to providing robust cloud services while minimizing environmental impact. The company also plans to train 250,000 individuals in essential AI skills by 2027. [0b82e855]

President Joe Biden recently announced plans for Microsoft to build a new artificial intelligence data center in southeastern Wisconsin. The new $3.3 billion center will create 2,000 permanent jobs and occupy a site once planned for a Foxconn factory. In 2018, Donald Trump and Scott Walker cut a deal to bring Foxconn to Wisconsin in exchange for massive state tax subsidies. But Foxconn never lived up to its end of the deal and created only a fraction of the 13,000 jobs it promised. The new data center is seen as a positive development after years of disappointment with Foxconn's failed promises. President Biden visited Racine, Wisconsin to showcase Microsoft's $3.3 billion investment in building a new data center. The data center, which will be owned and operated by Microsoft, is set to employ 2,300 unionized workers during the construction phase and will eventually need 2,000 permanent workers. This investment provides a stark contrast to the failed $10 billion manufacturing facility that was planned by Foxconn but never materialized. Trump had promised the construction of a Foxconn semiconductor fabrication facility that would create 13,000 jobs, but it never came to fruition. Biden blamed Trump's 'trickle-down economics' for the decline in employment in Racine. Since Biden took office, 178,000 jobs have been created in Wisconsin. Biden's visit to Wisconsin was meant to showcase his commitment to invest in places that have been historically overlooked or failed by the previous administration's policies. President Biden's economic strategy aims to revitalize areas that have been left behind by previous approaches. The administration is focused on addressing racial inequity and narrowing the regional divide in economic outcomes. The $3.3 billion investment by Microsoft in Racine, Wisconsin is part of this strategy. The investment is projected to create 2,300 union construction jobs and 2,000 permanent jobs over time. The data center will be constructed on the same site where Foxconn's failed investment was planned. President Biden's Investing in America agenda seeks to grow the economy from the middle-out and bottom-up, providing Americans with more financial flexibility and encouraging private sector investment in industries of the future. Since Biden assumed office, Racine has gained nearly 4,000 jobs, while Wisconsin as a whole has added 177,000 jobs. Microsoft's investment also includes a partnership with Gateway Technical College to establish a Datacenter Academy, which will train 1,000 Wisconsinites for data center and STEM roles by 2030. Furthermore, Microsoft will construct a Co-Innovation Lab in southeast Wisconsin and collaborate with startup accelerator Gener8tor to train 1,000 business leaders in adopting AI in their operations. President Biden's agenda not only focuses on attracting private investment but also on reducing costs for working families in Racine and throughout Wisconsin. This includes savings on internet bills, utility bills, prescription drugs, health insurance, and student debt. The Wisconsin Biohealth Tech Hub has been designated as a Tech Hub under the CHIPS and Science Act by the Department of Commerce. Milwaukee has been named an Investing in America Workforce Hub. Wisconsin has received $6.9 billion from President Biden's Investing in America agenda for infrastructure and clean energy. The Grow Milwaukee Coalition has been selected as one of 22 finalists for the Department of Commerce Recompete Distressed Area Pilot Program. Additionally, Nokia has announced a partnership with Sanmina Corporation to create 200 jobs and manufacture fiber-optic broadband electronics in the United States. Ingeteam, a clean energy manufacturing company, will begin manufacturing electric vehicle fast chargers this year. President Biden's agenda is attracting industries of the future, including clean energy and advanced manufacturing. The Biden administration's 'place-based' approach aims to improve infrastructure, attract private investment, and eliminate physical barriers to opportunities in specific communities. The strategy acknowledges the mixed track record of such policies and the challenges of sustaining long-term efforts to heal distressed areas. By focusing on infrastructure improvements and attracting private investment, the administration aims to create economic opportunities and address racial inequity. The administration's goal is to ensure that all communities can benefit from the nation's growing prosperity and transition to cleaner energy sources. However, there are concerns about the sustainability of the administration's economic strategy. The reliance on federal grants and tax credits raises questions about the long-term funding and effectiveness of the initiatives. Critics argue that Washington may struggle to sustain the necessary effort to revitalize distressed areas and achieve lasting economic change. Despite these concerns, the Biden administration is committed to narrowing the regional divide and addressing racial inequity through targeted investments and infrastructure improvements. The economic strategy also aims to attract private investment to distressed areas. By improving infrastructure and eliminating physical barriers, the administration hopes to create an environment that is conducive to private sector growth and job creation. The goal is to encourage businesses to invest in these communities, creating economic opportunities and reducing disparities in economic outcomes. The administration's approach recognizes the importance of private sector involvement in achieving long-term economic revitalization. Biden's visit to Milwaukee is significant in highlighting the administration's commitment to economic revitalization and racial equity. By focusing on minority neighborhoods and addressing the challenges faced by these communities, the administration aims to court minority voters and demonstrate its dedication to creating a more equitable and prosperous future for all Americans. The visit also underscores the importance of key states in the administration's political strategy. The success of the Biden administration's 'place-based' policies depends on more than well-chosen investments. Policymakers also need to help workers navigate a rapidly changing labor market. While infrastructure improvements and private investment can create economic opportunities, workers need the skills and support to take advantage of those opportunities. The administration must prioritize workforce development and provide resources for retraining and upskilling workers in distressed areas. By addressing both the physical and human capital needs of these communities, the administration can make meaningful progress in narrowing regional economic gaps.