Following a statement from the governor of Mississippi, Musk and his xAI company have once again focused global attention on the next key battleground in the AI race: the construction of computing infrastructure. Investing over $20 billion in a massive data center in Southhaven, scheduled to be operational in February 2026, is not only xAI’s most ambitious infrastructure investment to date, but also a heavy bet Musk has placed on a crucial two- to three-year period of survival.

At a recent xAI internal conference, Musk’s words directly addressed the core of the competition: rapidly expanding computing power and data capacity is the key to victory. He defined the next three years as a window of opportunity to determine whether xAI can “defeat its competitors,” and unusually, gave a possible timeline for the realization of AGI (Artificial General Intelligence)—as early as 2026. This timing, coinciding perfectly with the launch of the new data center, suggests Musk’s intention to use explosive growth in computing power reserves as the ultimate engine for achieving AGI.
Behind this massive plan lies Musk’s profound insight into the essence of the current AI race: leaps in model capabilities increasingly rely on massive computing resources and data throughput. The $20 billion investment is not merely about building a data center, but about constructing a formidable “computing power moat” that will be difficult to overcome in the short term. With competitors also accelerating their deployments, whether xAI can leverage this infrastructure advantage to achieve a technological breakthrough around 2026 will directly determine its ability to break through the fierce competition, and even, as Musk predicts, define the future of AGI.
The global AI race has entered a fierce resource-intensive war. Musk’s high-stakes gamble with xAI not only concerns the fate of one company but may also reshape the trajectory and pace of the entire artificial intelligence development. Everyone is waiting for the answer in 2026.
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