Elon Musk’s artificial intelligence startup, xAI, has officially broken ground on its $80 million wastewater treatment facility in Memphis, Tennessee. The project aims to reduce strain on the Memphis aquifer by 9% and repurpose 20% of wastewater from the nearby Memphis T.E. Maxson wastewater facility that would otherwise flow back into the Mississippi River.

A major step towards sustainability

City officials, including Councilman J. Ford Canale and Memphis Chamber of Commerce CEO and President Ted Townsend, joined xAI staff at the October 10 ceremony. The project was described as a long-needed solution for the region as it will have a treatment capacity of 13 million gallons daily, which would then be used for industrial cooling use xAI and the Tennessee Valley Authority (TVA). 

This means that the facility will help conserve 5 billion gallons of potable water annually, easing demand on Memphis’ primary water system. At these levels, xAI Memphis noted that its wastewater treatment facility will feature the largest ceramic membrane MBR in the world, using 13,000 membrane modules that collectively span over 900,000 square feet, roughly the size of 16 football fields. 

Construction permits have been secured for the pump station, while the main operations permit from the Tennessee Department of Environment and Conservation remains under review.

A privately funded push

The wastewater treatment facility represents a rare privately funded water reclamation initiative, with xAI covering construction costs, as noted in a Yahoo News report. The company filed preliminary plans through its affiliate CTC Property LLC in 2024, hinting at the startup’s long-term commitment to sustainable infrastructure around its growing Memphis operations. TVA CEO and President Don Moul shared his excitement for the project.

“This is a big day for Memphis, Tennessee. This initiative not only reduces our need to purchase water from MLGW for our nearby Allen Combined Cycle Plant, but it also eases demand on the region’s potable water system. By recycling water for cooling purposes, we’re helping to preserve drinking water for the community and advancing a solution that benefits both the environment and the Greater Memphis area,” he said.

Reports have emerged suggesting that Elon Musk might be rethinking his promise to give away most of his fortune. This was reportedly due to his longtime friend Peter Thiel, who told the world’s richest man to withdraw from the Giving Pledge because his wealth could end up “in left-wing nonprofits chosen by Bill Gates.”

Thiel shared the story during a private lecture series in San Francisco in September. As noted in a Reuters report, Musk reportedly took Thiel’s suggestion seriously.

Thiel warned Musk about his fortune going to Gates-backed causes

Thiel said he even ran the math to make his point. By checking actuarial tables, he calculated that if Musk died within a year, his pledge would effectively direct $1.4 billion to Bill Gates. Musk reportedly said, “What am I supposed to do, give it to my children? You know, it would be much worse to give it to Bill Gates.”

Musk signed on to the Giving Pledge in 2012, two years after it was co-founded by Gates and Warren Buffett, as noted in a Daily Beast report. The initiative asks billionaires to donate the majority of their wealth to charitable causes either during their lifetime or through their wills. Gates’ foundation has focused on global health, education, and gender equality, areas Thiel has described as “left-leaning.”

Spokespeople for Thiel, Musk, and Gates have not issued a comment about the matter.

Elon Musk and Bill Gates

Thiel, who co-founded PayPal with Musk in 2000 before launching Palantir and becoming Facebook’s first outside investor, has maintained close ties to the Tesla and SpaceX CEO over the years. Musk, for his part, continues to donate through the Musk Foundation, which funds education, clean energy, and scientific research.

Elon Musk and Bill Gates’ relationship has taken a nosedive in recent years, especially amidst news that the Microsoft co-founder had taken a short bet against Tesla. Musk seemed to have taken Gates’ Tesla short personally, considering that the EV maker is fighting for sustainability, a cause that the Microsoft co-founder has supported. 

Gates has also been skeptical of Tesla’s projects such as the Tesla Semi, which Gates noted was not feasible due to the limitations of battery technology. More recently, the two billionaires butted heads when Gates claimed that the cuts initiated by Musk’s DOGE initiative would cost 2 million lives. In a post on X, Musk responded by stating that “Gates is a huge liar.”

One notable investor that many people will recognize said today on X that he does not understand Tesla shorts, otherwise known as $TSLAQ, and he’s giving some interesting reasons.

Martin Shkreli was long known as “Pharmabro.” For years, he was known as the guy who bought the rights to a drug called Daraprim, hiked the prices, and spent a few years in Federal prison for securities fraud and conspiracy.

Shkreli is now an investor who co-founded several hedge funds, including Elea Capital, MSMB Capital Management, and MSMB Healthcare. He is also known for his frank, blunt, and straightforward responses on X.

His LinkedIn currently shows he is the Co-Founder of DL Software Inc.

One of his most recent posts on X criticized those who choose to short Tesla stock, stating he does not understand their perspective. He gave a list of reasons, which I’ll link here, as they’re not necessarily PG. I’ll list a few:

• Fundamentals always have and will always matter
• TSLAQ was beaten by Tesla because it’s “a great company with great management,” and they made a mistake “by betting against Elon.”
• When Shkreli shorts stocks, he is “shorting FRAUDS and pipe dreams”

After Shkreli continued to question the idea behind shorting Tesla, he continued as he pondered the mentality behind those who choose to bet against the stock:

“I don’t understand ‘TSLAQ.’ Guy is the richest man in the world. He won. It’s over. He’s more successful with his 2nd, 3rd, and 4th largest companies than you will ever be, x100.

You can admit you are wrong, it’s just a feeling which will dissipate with time, trust me.”

i dont understand “$TSLAQ”. guy is the richest man in the world. he won. it’s over. he’s more successful with his 2nd, 3rd and 4th largest companies than you will ever be, x100.

you can admit you are wrong, it’s just a feeling which will dissipate with time, trust me. https://t.co/dkqrISCldp

— Martin Shkreli (@MartinShkreli) October 8, 2025

According to reports from both Fortune and Business Insider, Tesla short sellers have lost a cumulative $64.5 billion since Tesla’s IPO in 2010.

Elon Musk issues dire warning to Tesla (TSLA) shorts

Shorts did accumulate a temporary profit of $16.2 billion earlier this year.