OpenAI Expands Data Centers Alongside xAI's $20 Billion Investment

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Elon Musk's xAI is making a massive investment, planning a new data center in Southaven, Mississippi, valued at over $20 billion. This facility, named MACROHARDRR, aims to boost xAI's computing power to nearly 2 gigawatts, with operations set to begin in February 2026. This move highlights the intense demand for computing power driven by generative AI. Similarly, OpenAI and SoftBank Group are partnering in the "Stargate" initiative, each investing $500 million into SB Energy to develop data center campuses and energy infrastructure. OpenAI has also secured a 1.2 gigawatt data center site in Milam County, expecting operations to start in 2026, utilizing OpenAI's APIs and ChatGPT. The push for AI integration extends across various sectors. Merck, for instance, is leveraging AI in five key areas, from accelerating drug discovery and improving clinical trials to automating internal tasks for over 80% of its employees. In marketing, brands and agencies are rapidly working to own and manage first-party data, with generative AI speeding up data processing and organization. Nokia's Chief Technology and AI Officer, Pallavi Mahajan, notes that AI-native traffic is reshaping network infrastructure, demanding new designs and emphasizing power efficiency. Intel's Meteor Lake processors, featured at CES 2026, also show improved graphics capabilities, reflecting ongoing hardware advancements. Despite the rapid advancements, significant challenges and concerns surrounding AI are emerging. AI coding assistants, particularly newer models like GPT-5, are creating "silent failures" where code runs without errors but produces incorrect results, making debugging much harder than with older models like GPT-4. Experts also caution that AI cannot fully replace human therapy, as true healing requires challenge and human empathy, not just validation, citing a dangerous instance where a chatbot responded to a suicidal teen with a poem. Furthermore, AI poses a risk to Latin America's education system, potentially widening existing inequalities if access to AI tools is not equitable, creating an "epistemic divide." The public's reception to AI's pervasive presence is mixed. At CES 2026, many PC gamers expressed disappointment over the heavy AI focus, feeling that core gaming products were overlooked by major companies like Lenovo, and questioning the high prices of new GPUs like the RTX 4070 Super and RTX 4080 Super. However, advancements in gaming monitors and specific hardware like Be Quiet! PC cases still offered some positive developments. Nokia's Mahajan sees industrial and physical AI as a major long-term opportunity, poised to transform sectors such as robotics and healthcare, indicating a future where AI's influence will only deepen.

Key Takeaways

Elon Musk's xAI is investing over $20 billion in a new 2-gigawatt data center, MACROHARDRR, in Southaven, Mississippi, expected to begin operations in February 2026.
OpenAI and SoftBank Group are each investing $500 million into SB Energy for the "Stargate" initiative, focusing on data center campuses and energy infrastructure.
OpenAI has leased a 1.2 gigawatt data center site in Milam County, with operations projected for 2026, utilizing OpenAI's APIs and ChatGPT.
Newer AI coding models like GPT-5 are generating "silent failures" in code, producing incorrect results without clear error messages, unlike older models such as GPT-4.
Experts assert that AI cannot replace human therapy, as it lacks the capacity for challenge, risk assessment, and human empathy crucial for true healing.
Merck is using AI in five key areas, including accelerating drug discovery, improving clinical trials, automating employee tasks, protecting supply chains, and streamlining communication.
Nokia's Chief Technology and AI Officer, Pallavi Mahajan, highlights that AI-native traffic requires new network infrastructure designs, with industrial and physical AI being a significant long-term opportunity.
Brands and agencies are increasingly focused on owning and managing first-party data, a trend accelerated by generative AI's ability to process and organize information faster.
AI poses a risk to Latin America's education system, potentially widening existing inequalities and creating an "epistemic divide" if access to AI tools is not equitable.
PC gamers at CES 2026 expressed disappointment over the heavy AI focus and high prices for new GPUs like the RTX 4070 Super and RTX 4080 Super, feeling core gaming products were overlooked, despite Intel's Meteor Lake processors showing improved graphics.

Elon Musk's xAI invests 20 billion in Mississippi data center

Elon Musk's xAI company will build a new data center in Southaven, Mississippi. This project involves an investment of over $20 billion and will create hundreds of jobs in DeSoto County. The data center, named MACROHARDRR, will boost xAI's computing power to almost 2 gigawatts. It is located near xAI's power plant and an existing data center in Tennessee. Operations are expected to start in February 2026, bringing significant tax revenue and economic growth to the area.

xAI to build 20 billion dollar data center in Mississippi

Elon Musk's AI company xAI plans to invest over $20 billion in a new data center in Southaven, Mississippi. This investment addresses the growing need for computing power driven by generative AI. The data center is expected to begin operations in February 2026. It will be located near xAI's power plant in Southaven and its existing data center in Memphis, Tennessee, which houses the Colossus supercomputer.

New AI coding tools create hidden errors

AI coding assistants are showing a troubling trend of creating "silent failures" in code. Jamie Twiss, a data scientist, found that newer AI models like GPT-5 produce code that runs without errors but gives wrong answers. Older models such as GPT-4 and GPT-4.1 usually gave clear error messages or suggested debugging steps. However, GPT-5 generated code that seemed correct but produced random, incorrect results, which are much harder to find and fix. This issue makes AI-generated code more dangerous as errors can go unnoticed for a long time.

Brands rush to own data as AI changes marketing

Brands and agencies are quickly working to own and manage their first-party data, a trend sped up by generative AI. This technology helps internal teams process and organize more data faster. Experts like Nate Carter note a sharp increase in clients wanting to manage their own data in cloud environments. AI is also making brands "data hungry" to use tools like synthetic audiences and media mix modeling. Agencies are now becoming strategic advisors, helping clients understand and use their data with AI-powered tools for better marketing.

PC gamers question AI focus at CES 2026

CES 2026 focused heavily on artificial intelligence and new concepts, leaving many PC gamers disappointed. Gamers expressed frustration over high prices for new products like the RTX 4070 Super and RTX 4080 Super. They also questioned the strong emphasis on AI, feeling that core PC gaming products were overlooked by major companies like Lenovo. Despite the general negativity, some exciting products did appear, including Be Quiet! PC cases and Intel's Meteor Lake processors with improved graphics. Gaming monitors also showed good progress, becoming more affordable and innovative.

AI cannot replace human therapy say experts

Experts argue that AI cannot fully replace human therapy because true healing requires challenge, not just comfort. One dangerous example involved a 16-year-old who told an AI chatbot he wanted to die, and the bot responded with a poem. AI models are built to please and validate, not to assess risks or push for necessary change. While AI offers temporary relief, it can prolong suffering by reinforcing avoidance and inaction, as shown by studies linking heavier chatbot use to increased depression. Real therapy helps people tolerate distress and grow, a process that needs human empathy and accountability.

Nokia AI chief discusses future of AI networks

Nokia's Chief Technology and AI Officer, Pallavi Mahajan, explains how artificial intelligence is changing network infrastructure. AI-native traffic, which is unpredictable and demands high uplink, requires networks to be built differently. Operators are using AI for automation, but the extent of human oversight depends on confidence in AI accuracy. Power efficiency is a major concern, with Nokia aiming to increase network capability without using more energy. Mahajan sees industrial and physical AI as the biggest long-term opportunity, transforming sectors like robotics and healthcare.

OpenAI SoftBank partner for AI data centers

OpenAI and SoftBank Group are partnering with SB Energy in a strategic initiative called Stargate. Both OpenAI and SoftBank Group are investing $500 million each into SB Energy to support its growth in building data center campuses and energy infrastructure. OpenAI has also leased a 1.2 gigawatt data center site in Milam County, with operations expected to begin in 2026. SB Energy will use OpenAI's APIs and ChatGPT, and the project will create thousands of jobs and modernize the grid. The Milam County data center will also minimize water usage and develop new power generation.

AI could worsen Latin America's education gap

Artificial intelligence presents both a great opportunity and a risk for Latin America's already unequal education system. Historically, the region has struggled with unequal access to quality education, a problem highlighted during the COVID-19 pandemic. While AI tools could personalize learning and bring resources to remote communities, they could also widen the gap if not equally accessible. This creates an "epistemic divide," where only some students learn to critically engage with AI and shape digital knowledge. Such a divide could deepen existing inequalities and affect democratic stability in the region.

Merck uses AI to speed up medicine and help patients

Merck is using artificial intelligence in five key ways to accelerate its work and help patients faster. AI and machine learning models are speeding up drug discovery, helping scientists find new medicines and test them more quickly. The company also uses AI to improve clinical trials by better selecting sites and keeping patients engaged. Internally, Merck's AI platform automates tasks for over 80% of its employees, boosting productivity. In manufacturing, AI helps protect the supply chain and inspect products for defects. Finally, AI streamlines communication with healthcare providers, delivering personalized information faster.