Elon Musk relocates to Memphis in Airstream trailer to directly oversee xAI's Colossus expansion and acceleration.

Elon Musk is living in an Airstream trailer in Memphis, parked steps from SpaceXAI's sprawling supercomputer complex. During a taping of the All-In podcast, Musk called it his "palace," and SpaceX President Gwynne Shotwell confirmed that he is literally sleeping on the factory floor.

The Colossus supercomputer cluster began construction in 2024 and has scaled to approximately 1 GW of AI compute capacity by mid-2026. The campus comprises multiple facilities—Colossus 1, Colossus 2 (also called Macrohard), Minihard, and supporting structures—all equipped with Nvidia GPUs for training Grok models and serving external clients.

Those clients command staggering sums. Anthropic has secured a rental agreement for Colossus 1 worth up to $1.25 billion per month. Google signed a deal for access to approximately 110,000 GPUs at around $920 million monthly, beginning in October 2026. The revenue explains SpaceX's acquisition of xAI earlier in 2026 for a reported $250 billion, consolidating Musk's AI operations under the SpaceXAI banner as a major player in the "neocloud" market—renting cutting-edge AI compute capacity to companies that need it but cannot build it fast enough themselves.

Gigawatt-scale operations demand gigawatt-scale power. SpaceXAI deployed temporary natural gas turbines while permanent infrastructure developed, with 69 running simultaneously at peak. Environmental concerns and permitting disputes from residents emerged over air quality and the pace of facility development. SpaceXAI committed to removing all 69 turbines by July 2027, transitioning to a permanent 1.2 GW gas facility operating under Clean Air Act compliance.

For energy storage, Tesla deployed approximately 720 Megapack units at the Colossus 2 site, creating what is being described as the largest grid battery in the United States, with 2.8 to 3.3 GWh of capacity. The Tennessee Valley Authority approved the grid connection in August 2026. The Tesla battery deployment cost approximately $1 billion by mid-2026.

Musk briefly became the world's first trillionaire for 12 days in June 2026 before his net worth settled around $917 billion.