LS ELECTRIC will supply power equipment for data centers to xAI, an artificial intelligence (AI) development company founded by Elon Musk, the CEO of Tesla.
According to the industry on the 17th, LS ELECTRIC supplied distribution board components to xAI's data center in Memphis, Tennessee, last year. Additional deliveries are under negotiation. The distribution board is a device that controls electricity coming from power plants and distributes it to final users such as data centers.
xAI is an AI development corporation established by Elon Musk in July 2023. Musk noted that the purpose of establishing xAI is "to understand the true nature of the universe." xAI has built a supercomputer called "Colossus" in Memphis, equipped with 100,000 graphics processing units (GPUs), along with a large-scale data center. Colossus is set to enhance its performance by adding 100,000 more GPUs soon.
In addition, LS ELECTRIC is negotiating supply of distribution boards with three major U.S. big tech corporations, including Microsoft. An industry insider said, "As investment in AI data centers rapidly expands, a shortage of power equipment has emerged in the U.S., making Korean corporations that can quickly deliver proven products stand out."