Executive Summary
Initially, I wanted to write a business report on Tesla, focusing on the company’s failings,
successes, and political influences. At first, this seemed like a good idea, but considering recent
events there is one Musk-owned company that I want to attract attention to. xAI, an AI
supercomputer company that's meant to utilize gas turbines to generate power and allow this
supercomputer to both operate and, more importantly, compete with China’s quantum processor
(Zuchongzhi 3.0) and supercomputer (Sunway TaihuLight). The specs of this xAI supercomputer
are a better upgrade, utilizing higher standard GPUs to operate 1 quintillion formulas and
computations in a second. The new xAI supercomputer operates with Exaflops (EFLOPS) is a
measure of a supercomputer's performance, specifically referring to its floating-point operations
per second. The Chinese supercomputer only runs in Petaflops specifically 125.4 petaflops
(125.4*10^15) The xAI computer runs on 497.9 exaflops (that’s 497.9*10^18). In comparison,
it’s easy to take at face value that xAI’s supercomputer is seen as a marvel the next leap towards
the advancement of artificial intelligence.
While technological innovations are one of the many contributors to a successful
business, we must be aware of the cost; the drive and need not only to have the most effective
technology available but to attain capital (money, resources, consumers) at any cost. We see in
Tennessee that there are individuals who are ultimately suffering from this company’s
installation and use of turbines. The article “Musk’s xAI explores another massive methane gas
turbine installation at second South Memphis data center” mentions the damage this company’s
installation has caused “Methane gas turbines release smog-forming pollution and hazardous
chemicals like formaldehyde. These pollutants are tied to increases in asthma, respiratory
diseases, heart problems, and certain cancers and are especially harmful to children. xAI’s
second data center is planned for South Memphis’ Whitehaven neighborhood and is roughly half
a mile from homes and a school… Local leaders should be fighting against environmental
injustice, not rolling out the red carpet for another polluting xAI data center with up to 90
methane gas turbines” (SELC). These methane gas turbines, which are the main power source of
these supercomputers, cause irreversible damage to the communities they surround.
The turbines, being built with no public oversight or consultation, will lead to the
company being sued by the families they affect. Many members of the public who are affected
by the pollution are those in poor black communities, who are already suffering from industrial
pollution. “Predominantly Black communities in South Memphis are already overburdened with
industrial pollution and face a cancer risk four times the national average….‘For decades, our
communities have been forced to deal with more than our fair share of industrial pollution,
leaving us wondering what’s in our air and how it’s impacting our health….not rolling out the
red carpet for another polluting xAI data center with up to 90 methane gas turbines’”(SELC).
This precedent of poor black communities being targeted by companies as good locations to set
up shops for pollution mills endangers the very communities that have been suffering prolonged
exposure to pollution for a long period.
Analysis
When it comes to the inner workings of xAI and its methods of leadership works in a
trickle-down system. Elon Musk, known for his performative nature when it comes to wanting to
be the smartest in the room, ultimately leads to his company becoming a wellspring of
narcissism. We can see easily by the company's “the ends justify the means” methods of
operation that the levels of internal entitlement as well as narcissism are blatant for all to see.
Likely, many managers, staff, and even regional leaders for xAI have a distorted view of
themselves that leaves them to believe that they are entitled to all that’s in their view.
This perspective coupled with the fact that Elon, while no longer very close to Trump,
does share many right-wing ideologies. Anti-immigration, pro-white-supremacy, Christian
nationalism, and many things that outside viewers will recognize and link to whatever major
company decisions Elon makes with xAI. Take for example the placement of the xAI
supercomputer centers, both centers placed near poor black communities that have poor access to
resources. This decision can easily, through the minds of the audience and those affected, be
linked to Elon’s right-wing sentiments.
This company shows no adherence to public law, regulation, and concern for those
affected by the gas turbines. Civilians and even consumers of these supercomputer AIs are lifethreateningly affected. The damage you do to those who consume your product develops a
tangible level of distrust as well as poor publicity. The negative impact xAI has left on the
communities in Tennessee does nothing more than harm reputation and limit individuals that
want to utilize xAI’s supercomputer to run their AI. This complete disregard for life leads to
more individuals losing faith in Elon’s company and decision-making skills.
Alongside the fact that xAI shows no real concern for the individuals that experience the
debilitating effects of these gas turbines xAI shares no clear and concise method of installing the
numbers of turbines in which they use, nor have they got proper public approval. It's seen in
Tennessee that many individuals expressed deep concerns about the installation of
supercomputer centers and their turbines but unfortunately, public officials in Tennessee view the
installation of the supercomputers as a rise to the GDP not giving much thought to how these
computers will affect their communities and allowing xAI to install these gas turbines without
following or meeting necessary regulations.
Conclusion
My end-of-all conclusion of this case is that in hindsight technological innovation should
not be gained at any expense. The ultimate cost for the next great leap into the future should not
be the lives of individuals or the lives of your consumers. If the lives of those from whom you
wish to benefit by consuming capital that they provide are the expense that you require for your
company to achieve its goals, then your company is doomed to fail. The very individuals in
whom xAI wish to profit off simultaneously seek their demise. The xAI company and other
companies run by Elon Musk seek only to gain profit from its consumers and do not to innovate
their lives. They have no real sense of morality when it comes down to the cost of what it is
they're trying to achieve. When China was able to develop its supercomputers that housed AI's it
didn't seek for those supercomputers to disrupt the daily life of those that live within nearby
communities.
I would say that my ultimate suggestion whether it be Elon Musk's company or any
company for that matter would be simply to find ways to innovate without the cost of human life
being, it's far too common, we see in this age of neo-industrial revolution where the cost of
human life is deemed as something less than capital. Too many companies xAI, Amazon, Disney,
and Facebook Place the value of capital well beyond the means of those to whom they wish to
either attain that capital or lend margins of faint margins of that capital. It's not always about the
end all-be-all dollars that companies are looking for at the end of every quarter. If your
consumers, constituents, and those who have access to viewing the works done by your company
are not affected positively by it your company will ultimately suffer and due to the greed in
which these companies have like X AI they ultimately fall and succumb to their greed by putting
the lives of those that they deem less than in danger.
Strebig, Neil. “Mississippi Officials Join in Fight against Elon Musk’s XAI Project in Memphis.”
The Commercial Appeal, Memphis Commercial Appeal, 9 June 2025,
www.commercialappeal.com/story/money/business/development/2025/06/09/elon-musk-xai-inmemphis-environmental-concerns/84118702007/.
“Musk’s XAI Explores Another Massive Methane Gas Turbine Installation at Second South
Memphis Data Center.” Southern Environmental Law Center, Southern Environmental Law
Center, 8 May 2025, www.selc.org/press-release/musks-xai-explores-another-massive-methanegas-turbine-installation-at-second-south-memphis-data-center/.