Elon Musk's Tesla Once Built Cars In A Tent To Meet Production Goals: Now, Mark Zuckerberg Is Channeling His Nemesis As Meta Builds AI Data Centers In Tents

Meta Platforms Inc. META CEO Mark Zuckerberg is investing heavily in AI as the company plans to build data centers that would use over 1 Gigawatt of power each.

Check out the current price of META stock here.

What Happened: The news, first reported by Semianalysis on Friday and then by Business Insider on Monday, shared how Zuckerberg was building data centers for AI in tents, in a move that's similar to Elon Musk's Tesla Inc. TSLA.

Musk's EV giant, in 2018, was manufacturing Tesla Model 3 cars in what Musk called a “tent,” outside of the Fremont, California, manufacturing facility in a bid to speed up production of the product and improve its Speed to Market.

"Inspired by xAI’s unprecedented time-to-market, Meta is embracing a datacenter design that prioritizes speed above all else,” Semianalysis shared in the report.

Zuckerberg confirmed the story in a post on Facebook on Monday. "We’re actually building several multi-GW clusters. We’re calling the first one Prometheus, and it’s coming online in ’26." Zuckerberg said.

Source: Mark Zuckerberg via Facebook

The CEO also added that the company's second Hyperion data center could "scale up to 5GW" of power.

Why It Matters: The news comes as Meta's Superintelligence Lab is reportedly considering moving to a closed-source model for its AI. This comes after Zuckerberg confirmed Meta would invest hundreds of billions of dollars to achieve Superintelligence.

Meta's aggressive AI push could send tremors around the sector, with the company poaching top AI talent from competitors like Apple Inc. AAPL and OpenAI.

Elsewhere, Musk's xAI is also establishing itself as a key player in the AI industry, as the company was recently awarded defense contracts worth over $200M by the Pentagon. xAI also announced that its model Grok is available to purchase for government agencies and institutions.

Meta scores well on Momentum, Quality and Growth metrics, but offers poor Value. For more such insights, sign up for Benzinga Edge Stock Rankings today!

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