GoKawiil
Tech News
Facing multi-year waits for grid connections and new turbines, some AI data center operators are installing retrofitted jet engines that burn natural gas to generate their own power, according to the New York Times. xAI has installed eight such units from ProEnergy in Mississippi to help power its Colossus 2 facility, and OpenAI-linked developer Crusoe has ordered 13 more for the Stargate site in Abilene, Texas.
xAI is powering a Mississippi data center using eight repurposed General Electric jet turbines converted by ProEnergy, each capable of producing up to 50 megawatts. State permits allow a 25% higher limit on volatile organic compound emissions, and the Southern Environmental Law Center has challenged the approval, arguing xAI hasn't shown the turbines meet standards for pollutants like formaldehyde and has undercounted projected emissions.
A federal judge denied SpaceX's motion to dismiss a lawsuit brought by the NAACP over gas turbines powering xAI's Colossus 2 data center in Southaven, Mississippi. The court rejected xAI's claim that the 27 turbines qualify as exempt 'mobile sources,' ruling they remain subject to Clean Air Act permitting requirements. The NAACP, represented by the Southern Environmental Law Center and Earthjustice, alleges the turbines were installed without proper permits and emit harmful pollutants.
Elon Musk confirmed that Grok Bot users are hitting usage caps far faster than before, telling an X user the cost of running the chatbot was "unsustainably high" relative to revenue. Users report limits dropping sharply without warning, with some describing usage caps as effectively tripling in cost, and have labeled the change an "indirect rug pull" on Reddit and X.
A federal judge, Debra M. Brown, rejected xAI's motion to dismiss a lawsuit from the NAACP accusing the company of operating unpermitted methane gas turbines at its Memphis data center campus in violation of the Clean Air Act. xAI had argued the turbines were exempt because they were mobile, but Brown ruled the power plant supplying the data center is stationary and thus subject to permitting rules. The NAACP filed suit in April, and xAI has since added more turbines at a nearby site in Southaven, Mississippi.
A federal judge ruled that the NAACP's lawsuit against xAI can proceed, denying the company's motion to dismiss claims it operated gas turbines at its Memphis-area Colossus data center without required air permits. Judge Debra M. Brown rejected xAI's arguments that the turbines qualify as exempt mobile sources and that the plaintiffs lack standing, also upholding the constitutionality of citizen suits under the Clean Air Act.
Real estate agents working on behalf of Elon Musk's xAI have been approaching homeowners in Southaven, Mississippi, offering to purchase their properties in exchange for signing agreements not to sue over noise from nearby data centers, according to The Guardian. One agent said the goal is to acquire 418 homes, and recordings reviewed by the outlet show 18 homeowners have already agreed to sell. Residents near the three data centers built in Southaven and nearby Memphis over the past two years describe constant, jet-engine-like noise disrupting their sleep.
MZX, linked to xAI's Southaven data center operations, is offering to purchase homes near the facility, requiring sellers to sign a release waiving claims related to a pending lawsuit over noise and other grievances. MZX denies the allegations in the Haley lawsuit but says it needs the property for business purposes. Homeowners who accept the buyout and sign the release agreement would forfeit any right to recover damages or pursue further legal action tied to the plant.
Labour MP Jess Asato is taking legal action against Elon Musk's xAI, alleging the company's Grok tool used her image without consent to generate explicit deepfakes, including one depicting a sexual assault. Asato says she reported the images to X but the platform repeatedly dismissed her complaints, prompting her to pursue the matter in court instead.
Consumer-facing AI agents such as Meta's Muse and xAI's Grok Bot are increasingly interacting with businesses directly, pursuing refunds, discounts and credits for the people who deploy them. Some retailers have already responded, with Amazon blocking Muse and Shopify building a separate checkout path for it, reflecting an early split in how companies are handling these bots.
Elon Musk confirmed on SpaceX's Q3 earnings call that both companies have set up independent committees to explore merging, but said terms haven't been agreed and a deal isn't guaranteed. Musk said he is recusing himself from the talks due to his dual leadership role, and noted any agreement would require shareholder approval. The move follows SpaceX's earlier absorption of xAI in February and ongoing joint work with Tesla on the Terafab chip project.
Elon Musk disclosed during SpaceX's Q3 2026 earnings call that both companies have set up special committees of independent directors to explore a possible merger, at shareholders' request. Musk, who leads both firms, said he and his brother Kimbal are excluded from the discussions as conflicted parties, and cautioned that no deal is guaranteed.