Elon Musk never misses an opportunity for a good troll, and his latest real estate announcement is no exception. On Tuesday, the tech billionaire revealed that his AI startup xAI has acquired a third building to massively scale up its computing power. The building's name? MACROHARDRR. Yes, that appears to be a playful jab at Microsoft Corp (MSFT), which happens to be OpenAI's biggest financial backer.

Building Out an AI Empire, One Warehouse at a Time

Musk shared the news on X, explaining that the new facility will push xAI's total training compute capacity to almost 2 gigawatts. That's a staggering amount of power dedicated to training AI models that can go toe-to-toe with OpenAI's ChatGPT and Anthropic's Claude.

While Musk didn't specify the exact location in his post, reports indicate the new facility will be located outside Memphis, Tennessee, joining xAI's existing Colossus supercomputer cluster. Colossus is already considered the world's largest AI supercomputer, and xAI has ambitious plans to make it even bigger.

A Million GPUs and Counting

According to Reuters, citing The Information, xAI plans to expand Colossus to house at least 1 million graphics processing units. That would cement its position as one of the most powerful AI training systems on the planet. The sheer scale of this buildout reflects how seriously Musk is taking the AI arms race.

The newly acquired warehouse won't come online immediately. xAI expects to begin converting it into a data center in 2026. Both this new site and a planned "Colossus 2" facility are strategically positioned near a natural gas power plant that xAI is constructing, along with access to other energy sources. When you're aiming for 2 gigawatts of compute power, you need serious infrastructure to keep the lights on.

Chasing a $230 Billion Valuation

This expansion comes at a pivotal moment for xAI. Last month, reports emerged that the company is in late-stage discussions to raise $15 billion in fresh equity funding, which would value the startup at around $230 billion. Not bad for a company that's still racing to catch up with more established competitors like OpenAI and Anthropic.

The aggressive infrastructure spending and fundraising efforts underscore Musk's determination to build xAI into a genuine contender in the AI space, even if it means taking playful shots at Microsoft along the way.