Selloff or Market Correction? Either Way, Here's What to Do NextSee Overvalued Stocks

Musk's xAI operating gas turbines without permits at data center, environmental group says

Published 08/28/2024, 12:04 PM
Updated 08/28/2024, 04:11 PM
© Reuters. FILE PHOTO: xAI logo is seen near computer motherboard in this illustration taken January 8, 2024. REUTERS/Dado Ruvic/Illustration/File Photo
GOOGL
-
NVDA
-

(Reuters) - Elon Musk's AI startup, xAI, is facing criticism from environmental and health advocates for allegedly contributing to pollution in Memphis, Tennessee, by using natural gas-burning turbines at its data center without obtaining necessary permits.

The Southern Environmental Law Center sent a letter to the Environmental Protection Agency and the health department in Shelby County where the data center is located.

"Despite installing nearly 20 gas turbines with a combined capacity of about 100 MW - enough electricity to power around 50,000 homes - xAI apparently has not applied for any air permits for these turbines," the letter, dated Aug. 26, said.

The environmental legal advocacy organization called on the county's health department to verify if xAI is operating these turbines without the required air permits and take enforcement action.

It said the gas turbines emit large quantities of gases that exacerbate already poor air quality in Memphis.

Musk said late last month a cluster of powerful Nvidia (NASDAQ:NVDA) H100 chips started training xAI's Grok AI model and dubbed the Tennessee data center as "the most powerful AI training cluster in the world".

He added the facility will provide a significant advantage in training the world's most powerful AI by December.

© Reuters. FILE PHOTO: xAI logo is seen near computer motherboard in this illustration taken January 8, 2024. REUTERS/Dado Ruvic/Illustration/File Photo

Elon Musk and xAI did not immediately respond to requests for comment.

The startup, founded by Musk last year and valued at more than $24 billion in May, was billed as a competitor to OpenAI, Alphabet (NASDAQ:GOOGL)'s Google and Anthropic. It recently launched Grok 2 series of language models earlier this month.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.