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Elon Musk’s xAI to build US’ most advanced supercomputer in Memphis, TN

Credit: xAI

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It appears that Elon Musk’s xAI is looking to build one of the world’s most advanced supercomputers in the United States in Memphis, Tennessee. The upcoming project was confirmed in a press conference on Wednesday that was held by the Greater Memphis Chamber. 

As noted in a report from the Memphis Business Journal, xAI would be building its supercomputer at the 785,000-square-foot former Electrolux Memphis facility located at 3231 Paul R. Lowry Road in Southwest Memphis. After its closure in 2022, Phoenix Investors paid $35 million for the Electrolux building, which was built on a 216-acre plot of land. 

In a press release, the Greater Memphis Chamber noted that xAI’s multi-billion-dollar supercomputer project, which is also dubbed the “Gigafactory of Compute,” would represent the city’s largest capital investment by a new-to-market company in Memphis history. United States Senator Bill Hagerty (R-TN) welcomed the project in a post on X. 

“I’m pleased to welcome xAI to Tennessee and congratulate Elon Musk on this exciting new initiative. This investment corroborates our state’s position as a leader in technological advances and discoveries and will expand our Artificial Intelligence capabilities to solve complex science and security problems. With this project, Tennessee will remain at the forefront of AI at a critical time for this rapidly evolving field of research,” Hagerty wrote. 

Ted Townsend, President & CEO of the Greater Memphis Chamber shared his excitement about the supercomputer project. He also praised the quick work that was done by officials to ensure that xAI made Memphis the top choice for its supercomputer’s location

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“Our Chamber is built for this. In less than three weeks, the Chamber’s economic development team demonstrated remarkable coordination, swiftly providing solutions and rallying partners faster than any other community. From the initial three weeks until today, Memphis emerged as a global nexus where velocity meets potency, which are attractive attributes to the xAI team,” Townsend said. 

Memphis Mayor Paul Young shared the same sentiments. “Memphis is a city of innovators, so it’s no surprise that it feels like home to those looking to change the world. We get things done here. We have great partners at the Greater Memphis Chamber and MLGW who were ready to make this happen. We had an ideal site, ripe for investment. And we had the power of our people who created new and innovative processes to keep up with the pace required to land this transformational project,” Young noted. 

Don’t hesitate to contact us with news tips. Just send a message to simon@teslarati.com to give us a heads up.

Simon is an experienced automotive reporter with a passion for electric cars and clean energy. Fascinated by the world envisioned by Elon Musk, he hopes to make it to Mars (at least as a tourist) someday. For stories or tips--or even to just say a simple hello--send a message to his email, simon@teslarati.com or his handle on X, @ResidentSponge.

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Elon Musk’s Grok records lowest hallucination rate in AI reliability study

Grok achieved an 8% hallucination rate, 4.5 customer rating, 3.5 consistency, and 0.07% downtime, resulting in an overall risk score of just 6.

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UK Government, CC BY 2.0 , via Wikimedia Commons

A December 2025 study by casino games aggregator Relum has identified Elon Musk’s Grok as one of the most reliable AI chatbots for workplace use, boasting the lowest hallucination rate at just 8% among the 10 major models tested. 

In comparison, market leader ChatGPT registered one of the highest hallucination rates at 35%, just behind Google’s Gemini, which registered a high hallucination rate of 38%. The findings highlight Grok’s factual prowess despite the AI model’s lower market visibility.

Grok tops hallucination metric

The research evaluated chatbots on hallucination rate, customer ratings, response consistency, and downtime rate. The chatbots were then assigned a reliability risk score from 0 to 99, with higher scores indicating bigger problems.

Grok achieved an 8% hallucination rate, 4.5 customer rating, 3.5 consistency, and 0.07% downtime, resulting in an overall risk score of just 6. DeepSeek followed closely with 14% hallucinations and zero downtime for a stellar risk score of 4. ChatGPT’s high hallucination and downtime rates gave it the top risk score of 99, followed by Claude and Meta AI, which earned reliability risk scores of 75 and 70, respectively. 

Why low hallucinations matter

Relum Chief Product Officer Razvan-Lucian Haiduc shared his thoughts about the study’s findings. “About 65% of US companies now use AI chatbots in their daily work, and nearly 45% of employees admit they’ve shared sensitive company information with these tools. These numbers show well how important chatbots have become in everyday work. 

“Dependence on AI tools will likely increase even more, so companies should choose their chatbots based on how reliable and fit they are for their specific business needs. A chatbot that everyone uses isn’t necessarily the one that works best for your industry or gives accurate answers for your tasks.”

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In a way, the study reveals a notable gap between AI chatbots’ popularity and performance, with Grok’s low hallucination rate positioning it as a strong choice for accuracy-critical applications. This was despite the fact that Grok is not used as much by users, at least compared to more mainstream AI applications such as ChatGPT. 

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Tesla (TSLA) receives “Buy” rating and $551 PT from Canaccord Genuity

He also maintained a “Buy” rating for TSLA stock over the company’s improving long-term outlook, which is driven by autonomy and robotics.

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Credit: Tesla China

Canaccord Genuity analyst George Gianarikas raised his Tesla (NASDAQ:TSLA) price target from $482 to $551. He also maintained a “Buy” rating for TSLA stock over the company’s improving long-term outlook, which is driven by autonomy and robotics. 

The analyst’s updated note

Gianarikas lowered his 4Q25 delivery estimates but pointed to several positive factors in the Tesla story. He noted that EV adoption in emerging markets is gaining pace, and progress in FSD and the Robotaxi rollout in 2026 represent major upside drivers. Further progress in the Optimus program next year could also add more momentum for the electric vehicle maker. 

“Overall, yes, 4Q25 delivery expectations are being revised lower. However, the reset in the US EV market is laying the groundwork for a more durable and attractive long-term demand environment. 

“At the same time, EV penetration in emerging markets is accelerating, reinforcing Tesla’s potential multi‑year growth runway beyond the US. Global progress in FSD and the anticipated rollout of a larger robotaxi fleet in 2026 are increasingly important components of the Tesla equity story and could provide sentiment tailwinds,” the analyst wrote. 

Tesla’s busy 2026

The upcoming year would be a busy one for Tesla, considering the company’s plans and targets. The autonomous two-seat Cybercab has been confirmed to start production sometime in Q2 2026, as per Elon Musk during the 2025 Annual Shareholder Meeting.

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Apart from this, Tesla is also expected to unveil the next-generation Roadster on April 1, 2026. Tesla is also expected to start high-volume production of the Tesla Semi in Nevada next year. 

Apart from vehicle launches, Tesla has expressed its intentions to significantly ramp the rollout of FSD to several regions worldwide, such as Europe. Plans are also underway to launch more Robotaxi networks in several more key areas across the United States.

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Waymo sues Santa Monica over order to halt overnight charging sessions

In its complaint, Waymo argued that its self-driving cars’ operations do not constitute a public nuisance, and compliance with the city’s order would cause the company irreparable harm.

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Credit: Waymo

Waymo has filed a lawsuit against the City of Santa Monica in Los Angeles County Superior Court, seeking to block an order that requires the company to cease overnight charging at two facilities. 

In its complaint, Waymo argued that its self-driving cars’ operations do not constitute a public nuisance, and compliance with the city’s order would cause the company irreparable harm.

Nuisance claims

As noted in a report from the Los Angeles Times, Waymo’s two charging sites at Euclid Street and Broadway have operated for about a year, supporting the company’s growing fleet with round-the-clock activity. Unfortunately, this has also resulted in residents in the area reportedly being unable to sleep due to incessant beeping from self-driving taxis that are moving in and out of the charging stations around the clock. 

Frustrated residents have protested against the Waymos by blocking the vehicles’ paths, placing cones, and “stacking” cars to create backups. This has also resulted in multiple calls to the police.

Last month, the city issued an order to Waymo and its charging partner, Voltera, to cease overnight operations at the charging locations, stating that the self-driving vehicles’ activities at night were a public nuisance. A December 15 meeting yielded no agreement on mitigations like software rerouting. Waymo proposed changes, but the city reportedly insisted that nothing would satisfy the irate residents.

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“We are disappointed that the City has chosen an adversarial path over a collaborative one. The City’s position has been to insist that no actions taken or proposed by Waymo would satisfy the complaining neighbors and therefore must be deemed insufficient,” a Waymo spokesperson stated.

Waymo pushes back

In its legal complaint, Waymo stated that its “activities at the Broadway Facilities do not constitute a public nuisance.” The company also noted that it “faces imminent and irreparable harm to its operations, employees, and customers” from the city’s order. The suit also stated that the city was fully aware that the Voltera charging sites would be operating around the clock to support Waymo’s self-driving taxis.

The company highlighted over one million trips in Santa Monica since launch, with more than 50,000 rides starting or ending there in November alone. Waymo also criticized the city for adopting a contentious strategy against businesses. 

“The City of Santa Monica’s recent actions are inconsistent with its stated goal of attracting investment. At a time when the City faces a serious fiscal crisis, officials are choosing to obstruct properly permitted investment rather than fostering a ‘ready for business’ environment,” Waymo stated. 

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