Meta & X ramp up AI investments

Meta and X are accelerating their efforts in generative AI, unveiling ambitious plans to expand their infrastructure and support advanced AI processing capabilities.

Meta is reportedly planning to build a $10 billion AI data center in Louisiana, which would become its largest facility globally. This hyperscaler data center in Richland Parish is designed to handle the massive computational loads required for AI development. Alongside its recently announced $10 billion 'W' undersea pipeline project, Meta’s combined investment in AI infrastructure is set to surpass $20 billion.

The company is also exploring nuclear energy as a sustainable solution for its energy needs, aiming to add 1-4 GW of nuclear generation capacity in the U.S. by the early 2030s. “Our aim is to create sufficient scale to achieve material cost reductions by deploying multiple units, both to provide for Meta’s future energy needs and to advance broader industry decarbonisation,” the company stated. These initiatives align with the companys' vision of enabling fully interactive AI-powered AR and VR environments, potentially revolutionising user experiences by allowing the creation of digital worlds through simple voice commands.

Meanwhile, Elon Musk’s xAI project is expanding its 'Colossus' supercluster, touted as the world’s largest supercomputer with over 100,000 Nvidia GPUs. Already operational in Memphis, Colossus is powering X’s AI chatbot, Grok, with further expansions underway to support the next phase of development.

While xAI lags behind established players like OpenAI, Google, and Meta, Musk’s track record has inspired confidence in his ability to push the boundaries of AI innovation.

Elon Musk's close ties with incoming President Donald Trump could further bolster xAI's position in the competitive AI landscape. Notably, both Meta's and xAI's latest infrastructure projects are based in the United States, aligning with the priorities of the Trump administration to drive domestic technological innovation. This focus on U.S.-based expansions could strengthen governmental support for their initiatives, further solidifying their foothold in the rapidly evolving AI sector.

With these developments, both Meta and X are positioning themselves to capitalise on the next wave of generative AI applications, setting the stage for transformative advancements in the industry.