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Tesla Powerwalls to help expand Virtual Power Plant in Colorado
Colorado’s Virtual Power Plant program is about to get even bigger, with the help of Tesla’s Powerwalls.
Tesla’s Powerwalls are set to help expand a Virtual Power Plant (VPP) program in Colorado, as an announcement this week notes that the company will be partnering with two local energy providers.
In a press release on Thursday, utility provider Xcel Energy and resource management company Itron announced a partnership with Tesla to help expand the existing VPP in Colorado, dubbed the Renewable Battery Connect program. Itron will integrate its IntelliFLEX platform with Tesla’s Powerwall management system, and the partners plan to increase the number of batteries that can be used during times of peak demand, as managed by Xcel.
The IntelliFLEX Aggregator Distributed Energy Resource Management System (DERMS) is designed to let energy providers localize the management of distributed batteries, utilizing a combination of residential battery storage, solar energy, electric vehicle (EV) chargers and other management systems to help balance grid energy more efficiently.
“Our Renewable Battery Connect program creates a new VPP in Colorado and we’re proud to work with Itron and Tesla, who have proven to be trusted industry partners and align with our goals to strengthen the energy grid while maintaining reliability and advancing renewable energy,” said Emmett Romine, Xcel’s VP of Customer Energy and Transportation Solutions. “This collaboration will deliver renewable, solar energy when our customers need it most.”
Truly one of the most underrated benefits of having a Tesla Powerwall.🏡🔋
Because fluctuating electricity prices suck.pic.twitter.com/GwIvOB3F1y
— TESLARATI (@Teslarati) February 27, 2025
READ MORE ON TESLA POWERWALLS: Tesla partners up to expand Virtual Power Plant program in Texas
Itron also says the IntelliFLEX system currently helps facilitate around three million distributed energy resource devices for 30 different utilities across the U.S. The company also says the tool will give Xcel more power to manage customers’ residential batteries to help stabilize local grids.
“Integrating our IntelliFLEX solution with Tesla Powerwall demonstrates a shared vision with a leading technology partner who is at the forefront of creating electrification solutions,” said Don Reeves, SVP of Outcomes at Itron. “Through this collaboration, we are excited to bring new capabilities to Xcel Energy as they embark on its energy transition journey.”
Tesla’s Powerwall home batteries have been utilized in markets around the world, effectively letting owners store and sell stored energy back to the electrical grid in times of peak demand, outages, and other peak use cases. This kind of distributed battery system is being piloted or run in a number of U.S. states, including California, Texas, and Massachusetts, and in a few other countries and territories.
The company currently builds Powerwalls at its Gigafactory in Nevada, and the facility in November celebrated building over 1,000 of the home batteries in a single day as it continues to ramp production. In October, Tesla also said that it had over 100,000 Powerwalls participating in its VPP programs worldwide.
Tesla shows off solar, Powerwall-backed display at Giga Berlin
Elon Musk
Tesla confirms that work on Dojo 3 has officially resumed
“Now that the AI5 chip design is in good shape, Tesla will restart work on Dojo 3,” Elon Musk wrote in a post on X.
Tesla has restarted work on its Dojo 3 initiative, its in-house AI training supercomputer, now that its AI5 chip design has reached a stable stage.
Tesla CEO Elon Musk confirmed the update in a recent post on X.
Tesla’s Dojo 3 initiative restarted
In a post on X, Musk said that with the AI5 chip design now “in good shape,” Tesla will resume work on Dojo 3. He added that Tesla is hiring engineers interested in working on what he expects will become the highest-volume AI chips in the world.
“Now that the AI5 chip design is in good shape, Tesla will restart work on Dojo3. If you’re interested in working on what will be the highest volume chips in the world, send a note to AI_Chips@Tesla.com with 3 bullet points on the toughest technical problems you’ve solved,” Musk wrote in his post on X.
Musk’s comment followed a series of recent posts outlining Tesla’s broader AI chip roadmap. In another update, he stated that Tesla’s AI4 chip alone would achieve self-driving safety levels well above human drivers, AI5 would make vehicles “almost perfect” while significantly enhancing Optimus, and AI6 would be focused on Optimus and data center applications.
Musk then highlighted that AI7/Dojo 3 will be designed to support space-based AI compute.
Tesla’s AI roadmap
Musk’s latest comments helped resolve some confusion that emerged last year about Project Dojo’s future. At the time, Musk stated on X that Tesla was stepping back from Dojo because it did not make sense to split resources across multiple AI chip architectures.
He suggested that clustering large numbers of Tesla AI5 and AI6 chips for training could effectively serve the same purpose as a dedicated Dojo successor. “In a supercomputer cluster, it would make sense to put many AI5/AI6 chips on a board, whether for inference or training, simply to reduce network cabling complexity & cost by a few orders of magnitude,” Musk wrote at the time.
Musk later reinforced that idea by responding positively to an X post stating that Tesla’s AI6 chip would effectively be the new Dojo. Considering his recent updates on X, however, it appears that Tesla will be using AI7, not AI6, as its dedicated Dojo successor. The CEO did state that Tesla’s AI7, AI8, and AI9 chips will be developed in short, nine-month cycles, so Dojo’s deployment might actually be sooner than expected.
Elon Musk
Elon Musk’s xAI brings 1GW Colossus 2 AI training cluster online
Elon Musk shared his update in a recent post on social media platform X.
xAI has brought its Colossus 2 supercomputer online, making it the first gigawatt-scale AI training cluster in the world, and it’s about to get even bigger in a few months.
Elon Musk shared his update in a recent post on social media platform X.
Colossus 2 goes live
The Colossus 2 supercomputer, together with its predecessor, Colossus 1, are used by xAI to primarily train and refine the company’s Grok large language model. In a post on X, Musk stated that Colossus 2 is already operational, making it the first gigawatt training cluster in the world.
But what’s even more remarkable is that it would be upgraded to 1.5 GW of power in April. Even in its current iteration, however, the Colossus 2 supercomputer already exceeds the peak demand of San Francisco.
Commentary from users of the social media platform highlighted the speed of execution behind the project. Colossus 1 went from site preparation to full operation in 122 days, while Colossus 2 went live by crossing the 1-GW barrier and is targeting a total capacity of roughly 2 GW. This far exceeds the speed of xAI’s primary rivals.
Funding fuels rapid expansion
xAI’s Colossus 2 launch follows xAI’s recently closed, upsized $20 billion Series E funding round, which exceeded its initial $15 billion target. The company said the capital will be used to accelerate infrastructure scaling and AI product development.
The round attracted a broad group of investors, including Valor Equity Partners, Stepstone Group, Fidelity Management & Research Company, Qatar Investment Authority, MGX, and Baron Capital Group. Strategic partners NVIDIA and Cisco also continued their support, helping xAI build what it describes as the world’s largest GPU clusters.
xAI said the funding will accelerate its infrastructure buildout, enable rapid deployment of AI products to billions of users, and support research tied to its mission of understanding the universe. The company noted that its Colossus 1 and 2 systems now represent more than one million H100 GPU equivalents, alongside recent releases including the Grok 4 series, Grok Voice, and Grok Imagine. Training is also already underway for its next flagship model, Grok 5.
Elon Musk
Tesla AI5 chip nears completion, Elon Musk teases 9-month development cadence
The Tesla CEO shared his recent insights in a post on social media platform X.
Tesla’s next-generation AI5 chip is nearly complete, and work on its successor is already underway, as per a recent update from Elon Musk.
The Tesla CEO shared his recent insights in a post on social media platform X.
Musk details AI chip roadmap
In his post, Elon Musk stated that Tesla’s AI5 chip design is “almost done,” while AI6 has already entered early development. Musk added that Tesla plans to continue iterating rapidly, with AI7, AI8, AI9, and future generations targeting a nine-month design cycle.
He also noted that Tesla’s in-house chips could become the highest-volume AI processors in the world. Musk framed his update as a recruiting message, encouraging engineers to join Tesla’s AI and chip development teams.
Tesla community member Herbert Ong highlighted the strategic importance of the timeline, noting that faster chip cycles enable quicker learning, faster iteration, and a compounding advantage in AI and autonomy that becomes increasingly difficult for competitors to close.
AI5 manufacturing takes shape
Musk’s comments align with earlier reporting on AI5’s production plans. In December, it was reported that Samsung is preparing to manufacture Tesla’s AI5 chip, accelerating hiring for experienced engineers to support U.S. production and address complex foundry challenges.
Samsung is one of two suppliers selected for AI5, alongside TSMC. The companies are expected to produce different versions of the AI5 chip, with TSMC reportedly using a 3nm process and Samsung using a 2nm process.
Musk has previously stated that while different foundries translate chip designs into physical silicon in different ways, the goal is for both versions of the Tesla AI5 chip to operate identically. AI5 will succeed Tesla’s current AI4 hardware, formerly known as Hardware 4, and is expected to support the company’s Full Self-Driving system as well as other AI-driven efforts, including Optimus.