Elon Musk Lives in Trailer to Oversee AI Data Center, Hints at Tesla-SpaceX Merger Possibility
Elon Musk has once again shown his hands-on approach to AI infrastructure. During an appearance at the All-In Summit on September 17, 2026, Musk revealed that he is currently living in a trailer in Memphis to personally oversee the construction of an AI data center. The facility is the Colossus supercomputing hub owned by xAI, which has been absorbed into SpaceX.
Musk said Colossus has secured multi-billion-dollar external contracts from Google and Anthropic. After SpaceX officially acquired xAI in February 2026, the data center has become a cornerstone of the company's AI computing strategy. According to SpaceXAI's website, Musk still aims to expand the Colossus system to 1 million GPUs by the end of 2026. In July 2026, he also announced plans for a fourth data center, Minihard, in the Memphis area.
Musk also discussed deeper collaboration between Tesla and SpaceX, revealing that the two companies are jointly building a wafer fab called Terafab in Austin. All equipment has been ordered, and he hopes to produce something useful by the end of 2027. Terafab is designed to produce more than 1 TW of computing hardware annually. When asked why Tesla and SpaceX remain separate entities, Musk did not rule out a possible merger, saying, "Who knows what people will do?"
Musk previously slept on factory floors during Tesla's Model 3 production hell and stayed at Twitter headquarters after acquiring the company. Now he is living in a trailer to push forward AI computing expansion. As xAI merges into SpaceX and Tesla cooperates with SpaceX on chip manufacturing, the boundaries between Musk's companies are becoming increasingly blurred.
