Elon Musk's business empire "cross-industry integration": Tesla batteries support xAI supercomputer

According to Zhitong Finance APP, Elon Musk's xAI is using Tesla (TSLA.US) Megapack batteries to support its "Colossus" supercomputer located in Memphis, which is another example of overlapping interests among Musk's companies.

The Greater Memphis Chamber announced in a press release on Wednesday that the system has added Megapack batteries to help cope with power outages and spikes in demand. The business organization stated that the xAI project has recently connected to a new substation that can provide 150 megawatts of power.

Musk's artificial intelligence startup has quickly taken action to build the facility in two phases and has faced criticism from environmental organizations for using natural gas turbines. With the completion of the first phase, some of the turbines will be dismantled.

The use of the 150-megawatt Megapack also highlights the collaboration among Musk's five companies. According to recent filings from Tesla, xAI has spent approximately $230 million on Megapacks from January 2024 to February of this year. Musk also leads SpaceX, Neuralink, and the Boring Company.

While Tesla is known for its electric vehicles, it is not just an automotive company. The company's mission is to "accelerate the world's transition to sustainable energy," and as car sales decline, its energy division is seen as a growing business.

Utility-scale batteries like Megapack are needed to store electricity generated from wind and solar power, but they can also yield substantial profits. By storing excess electricity when prices and demand are low, battery owners can sell the electricity back to the grid when prices surge