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Jon Keegan

Amazon’s Mississippi data centers will cost $16 billion

Big Tech is racing to spend billions building AI data centers in some of the poorest communities in America. But that doesn’t mean they will be cheap.

Amazon’s planned data centers in Madison County, Mississippi, are now expected to cost $16 billion, up from a $10 billion estimate just last year, according to reporting by Bloomberg.

But while Amazon is receiving $278 million in tax breaks and incentives from the state, it won’t be bringing an equally large number of jobs. The story notes:

“Amazon has said the Mississippi project will create at least 1,000 full-time jobs. But the documents show that almost two-thirds of them will be filled by contractors, not Amazon employees with company benefits.”

Last week, Meta announced it was building a city-sized AI data center in Richland Parish, Louisiana, as part of its $65 billion planned capital expenditures for 2025.

But while Amazon is receiving $278 million in tax breaks and incentives from the state, it won’t be bringing an equally large number of jobs. The story notes:

“Amazon has said the Mississippi project will create at least 1,000 full-time jobs. But the documents show that almost two-thirds of them will be filled by contractors, not Amazon employees with company benefits.”

Last week, Meta announced it was building a city-sized AI data center in Richland Parish, Louisiana, as part of its $65 billion planned capital expenditures for 2025.

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SpaceX is actually considering a merger with Tesla or xAI: Report

Bloomberg reports that Elon Musk’s SpaceX is considering merging with Musk’s Tesla. Earlier today, Reuters had reported that SpaceX was thinking of potentially merging with xAI ahead of SpaceX’s IPO this year.

From Bloomberg:

The firm has discussed the feasibility of a tie-up between SpaceX and Tesla, an idea that some investors are pushing, the people said, asking not to be identified as the information isn’t public. Separately, they are also exploring a tie-up between SpaceX and xAI ahead of an IPO, some of the people said.

Musk’s companies already have numerous relationships between themselves, including most recently Tesla’s $2 billion investment in xAI. At Tesla’s shareholder meeting last year, shareholders voted to invest in the company but the board didn’t approve the measure due to significant abstentions.

In 2024, SpaceX incurred about $2.4 million in expenses under commercial, licensing, and support agreements with Tesla, and Tesla incurred about $800,000 in expenses for Musk’s use of SpaceX’s jet.

From Bloomberg:

The firm has discussed the feasibility of a tie-up between SpaceX and Tesla, an idea that some investors are pushing, the people said, asking not to be identified as the information isn’t public. Separately, they are also exploring a tie-up between SpaceX and xAI ahead of an IPO, some of the people said.

Musk’s companies already have numerous relationships between themselves, including most recently Tesla’s $2 billion investment in xAI. At Tesla’s shareholder meeting last year, shareholders voted to invest in the company but the board didn’t approve the measure due to significant abstentions.

In 2024, SpaceX incurred about $2.4 million in expenses under commercial, licensing, and support agreements with Tesla, and Tesla incurred about $800,000 in expenses for Musk’s use of SpaceX’s jet.

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WSJ: Amazon considering $50 billion investment in OpenAI

What a difference half a day makes. Earlier today, The Information reported that Amazon was considering investing roughly $10 billion to $20 billion in OpenAI as part of a $60 billion fundraising round alongside Nvidia and Microsoft. Now The Wall Street Journal is reporting the e-commerce giant could invest up to $50 billion in the ChatGPT maker as part of a larger, $100 billion funding round. The Financial Times also earlier reported today a $100 billion funding round but with smaller amounts from Nvidia, Microsoft, and Amazon.

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Elon Musk’s SpaceX reportedly in talks to merge with xAI

Tesla CEO Elon Musk is reportedly exploring a merger between SpaceX and his artificial intelligence startup, xAI, a move that would bundle rockets, satellites, the social media site X, and AI under one company ahead of SpaceX’s long-anticipated IPO.

According to Reuters reporting, the deal would swap xAI shares for SpaceX stock, potentially valuing the combined operation north of $1 trillion.

Reuters reports:

Two entities have been set up in Nevada to facilitate the transaction, the person said.

Reuters could not determine the value of the deal, its ‌primary rationale, or its potential timing.

Corporate filings in Nevada show that those entities were set up on January 21. One of them, a limited liability company, lists SpaceX ​and Bret Johnsen, the companys chief financial officer, as managing members, while the other lists Johnsen as the companys only officer, the filings show.

The combined companies could also set the narrative groundwork for putting data centers in space — an idea that Musk and a number of other tech billionaires have been floating lately but that may not get off the ground.

In its earnings filings yesterday, Tesla disclosed that it recently made a $2 billion investment in xAI. Last year, Musk’s xAI bought Musk’s X in an all-stock deal.

Reuters reports:

Two entities have been set up in Nevada to facilitate the transaction, the person said.

Reuters could not determine the value of the deal, its ‌primary rationale, or its potential timing.

Corporate filings in Nevada show that those entities were set up on January 21. One of them, a limited liability company, lists SpaceX ​and Bret Johnsen, the companys chief financial officer, as managing members, while the other lists Johnsen as the companys only officer, the filings show.

The combined companies could also set the narrative groundwork for putting data centers in space — an idea that Musk and a number of other tech billionaires have been floating lately but that may not get off the ground.

In its earnings filings yesterday, Tesla disclosed that it recently made a $2 billion investment in xAI. Last year, Musk’s xAI bought Musk’s X in an all-stock deal.

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