Politics

xAI Hiring Trump Associate Sparks Controversy Amid Memphis Data Center Expansion

xAI Hiring Trump Associate Sparks Controversy Amid Memphis Data Center Expansion

Elon Musk’s artificial intelligence startup, xAI, has made a notable hire – Katie Miller, wife of President Donald Trump’s Deputy Chief of Staff, Stephen Miller, is joining the company as a communications manager. This move occurred shortly after xAI secured a controversial permit for its Memphis data center operations, sparking significant debate and community concern. The Shelby County Health Department granted xAI approval to operate 15 natural gas-burning turbines alongside its Colossus supercomputer facility. Despite months of persistent protests centered around critical air quality issues, the permit includes stringent emissions limits and rigorous testing requirements. A key component of the agreement involves substantial penalties – up to $10,000 per day – for any instances of non-compliance. Katie Miller, previously a seasoned political operative with experience at the Department of Government Efficiency, announced the permit approval through a rare email directly to reporters, dispatched from her xAI corporate address, as reported by Fortune. This communication represents a significant departure from Musk’s companies, which have historically disbanded dedicated media relations teams and primarily rely on social media for communication.

Katie Miller, previously a seasoned political operative with experience at the Department of Government Efficiency, announced the permit approval through a rare email directly to reporters, dispatched from her xAI corporate address, as reported by Fortune. This communication represents a significant departure from Musk’s companies, which have historically disbanded dedicated media relations teams and primarily rely on social media for communication. The Shelby County Health Department granted xAI approval to operate 15 natural gas-burning turbines alongside its Colossus supercomputer facility. Despite months of persistent protests centered around critical air quality issues, the permit includes stringent emissions limits and rigorous testing requirements. A key component of the agreement involves substantial penalties – up to $10,000 per day – for any instances of non-compliance. The approval signifies a strategic move for xAI, leveraging Miller’s political background to navigate regulatory hurdles.

This communication represents a significant departure from Musk’s companies, which have historically disbanded dedicated media relations teams and primarily rely on social media for communication. The Shelby County Health Department granted xAI approval to operate 15 natural gas-burning turbines alongside its Colossus supercomputer facility. Despite months of persistent protests centered around critical air quality issues, the permit includes stringent emissions limits and rigorous testing requirements. A key component of the agreement involves substantial penalties – up to $10,000 per day – for any instances of non-compliance. The hire comes at a crucial juncture, amid escalating tensions between Elon Musk and Donald Trump. Miller transitioned to full-time work for Musk’s ventures in May, following her departure from the White House, while Stephen Miller remains within the Trump administration. This shift has fueled speculation about the evolving relationship between the two billionaires, particularly given Musk’s recent pronouncements regarding the potential establishment of a rival political party.

The Memphis facility plays a pivotal role in powering xAI’s Grok AI model, marking Musk’s direct challenge to established industry leaders like OpenAI’s ChatGPT and Alphabet Inc.’s (GOOGL GOOG) Google Gemini. Recent developments reveal that xAI has successfully raised $10 billion through a combination of debt and equity financing, with ongoing discussions exploring the possibility of an additional $20 billion equity round, potentially valuing the company at over $120 billion. The Memphis supercomputer leverages primarily NVIDIA Corp. (NVDA) GPUs, supplemented by chips from Advanced Micro Devices Inc. (AMD). Musk’s ambitious plans involve deploying 1 million GPUs within the facility, with estimated acquisition costs ranging from $30 billion to $40 billion, according to analyst Gene Munster. This expansion underscores xAI’s commitment to rapidly scaling its AI capabilities.

Recent developments reveal that xAI has successfully raised $10 billion through a combination of debt and equity financing, with ongoing discussions exploring the possibility of an additional $20 billion equity round, potentially valuing the company at over $120 billion. The Memphis supercomputer leverages primarily NVIDIA Corp. (NVDA) GPUs, supplemented by chips from Advanced Micro Devices Inc. (AMD). Musk’s ambitious plans involve deploying 1 million GPUs within the facility, with estimated acquisition costs ranging from $30 billion to $40 billion, according to analyst Gene Munster. This expansion underscores xAI’s commitment to rapidly scaling its AI capabilities. The Shelby County Health Department granted xAI approval to operate 15 natural gas-burning turbines alongside its Colossus supercomputer facility. Despite months of persistent protests centered around critical air quality issues, the permit includes stringent emissions limits and rigorous testing requirements. A key component of the agreement involves substantial penalties – up to $10,000 per day – for any instances of non-compliance. The approval signifies a strategic move for xAI, leveraging Miller’s political background to navigate regulatory hurdles.

Musk’s ambitious plans involve deploying 1 million GPUs within the facility, with estimated acquisition costs ranging from $30 billion to $40 billion, according to analyst Gene Munster. This expansion underscores xAI’s commitment to rapidly scaling its AI capabilities. The Shelby County Health Department granted xAI approval to operate 15 natural gas-burning turbines alongside its Colossus supercomputer facility. Despite months of persistent protests centered around critical air quality issues, the permit includes stringent emissions limits and rigorous testing requirements. A key component of the agreement involves substantial penalties – up to $10,000 per day – for any instances of non-compliance. The approval signifies a strategic move for xAI, leveraging Miller’s political background to navigate regulatory hurdles.

The Memphis facility plays a pivotal role in powering xAI’s Grok AI model, marking Musk’s direct challenge to established industry leaders like OpenAI’s ChatGPT and Alphabet Inc.’s (GOOGL GOOG) Google Gemini. Recent developments reveal that xAI has successfully raised $10 billion through a combination of debt and equity financing, with ongoing discussions exploring the possibility of an additional $20 billion equity round, potentially valuing the company at over $120 billion. The Memphis supercomputer leverages primarily NVIDIA Corp. (NVDA) GPUs, supplemented by chips from Advanced Micro Devices Inc. (AMD). This expansion underscores xAI’s commitment to rapidly scaling its AI capabilities. The Shelby County Health Department granted xAI approval to operate 15 natural gas-burning turbines alongside its Colossus supercomputer facility. Despite months of persistent protests centered around critical air quality issues, the permit includes stringent emissions limits and rigorous testing requirements. A key component of the agreement involves substantial penalties – up to $10,000 per day – for any instances of non-compliance.